73-B-A-P_(49) - Earnings for several employees for the week...

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Earnings for several employees for the week ended March 12, 20--, are as follows: .:. Calculate the employer’s payroll taxes expense and prepare the journal entry as of March 12, 20--, assuming that FUTA tax is 0.8%, SUTA tax is 5.4%, Social Security tax is 6.2%, and Medicare tax is 1.45%. SOLUTION: Total unemployment taxable = $ 710.00 Total Social Security taxable = $4,000.00 Total earnings = $4,000.00 Social Security tax = $4,000 × 0.062
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Unformatted text preview: = $248.00 Medicare tax = $4,000 × 0.0145 = 58.00 FUTA tax = $710 × 0.008 = 5.68 SUTA tax = $710 × 0.054 = 38.34 Total employer payroll taxes $350.02 GENERAL JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT 20--Mar. 12 Payroll Taxes Expense 3 5 0 02 Social Security Tax Payable 2 4 8 00 Medicare Tax Payable 5 8 00 FUTA Tax Payable 5 68 SUTA Tax Payable 3 8 34 To record employer payroll taxes expense...
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