What was the liability relative to the january payroll


Jones Corporation pays its employees monthly. The following information is available for the January payroll:

Gross wages $ 70,000
FICA Rate 8%
Unemployment taxes:
Federal 0.5%
State 2.7%
Federal Income Tax Withheld $ 14,000

All employees' salaries are subject to the tax rates mentioned above for Jones Corporation.

Using the information above, what was the liability relative to the January payroll after the employees received and cashed their payroll checks?

A) $27,440

B) $21,840

C) $21,490

D) $25,200

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Accounting Basics: What was the liability relative to the january payroll
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