Question - Rand Company's payroll on December 31 of the current year is as follows:
Total payroll, $500,000
Payroll in excess of $100,000 to each employee, $350,000
Payroll in excess of $7,000 to each employee, $400,000
Income taxes withheld, $85,000
Union dues withheld, $10,000
Tax rates: State unemployment tax, 5.4%; F.I.C.A. tax, 6% for employees and 8% for employers for any amounts over $100,000; federal unemployment tax, 0.6%
How would you calculate the FICA Taxes Payable?