441-B-A-L_(5104) - On January 8 the end of the first weekly pay period of the year Regis Companys payroll register showed that its employees earned

441-B-A-L_(5104) - On January 8 the end of the first weekly...

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On January 8, the end of the first weekly pay period of the year, Regis Company’s payroll register showed that its employees earned $22,760 of office salaries and $65,840 of sales salaries. Withholdings from the employees’ salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $12,860 of federal income taxes, $1,340 of medical insurance deductions, and $840 of union dues. No employee earned more than $7,000 in this first period. Required 1. Calculate FICA Social Security taxes payable and FICA Medicare taxes payable. Prepare the journal entry to record Regis Company’s January 8 (employee) payroll expenses and liabilities. (Round amounts to cents.) 2. Prepare the journal entry to record Regis’s (employer) payroll taxes resulting from the January 8 payroll. Regis’s merit rating reduces its state unemployment tax rate to 4% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.6%. (Round amounts to cents.) SOLUTION Part 1 Jan. 8 Office Salaries Expense .............................................................. 22,760.00 Sales Salaries Expense ................................................................
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  • Fall '08
  • Olander
  • Finance, Corporate Finance, Study Guide, Exam, Key, Answers , ........., Federal Insurance Contributions Act tax, Regis¬†Company

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