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Untitled Document6 - $26(0.8 × $3,268 and SUTA taxes of...

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Employer payroll taxes The employer is responsible for three payroll-related taxes: * FICA Taxes. * Federal Unemployment Taxes (FUTA). * State Unemployment Taxes (SUTA). The FICA taxes paid by the employers are an amount equal to the FICA taxes  paid by the employees. The entry for the employer's payroll taxes expense for the  Feb. 28th payroll would include increases (credits) to liabilities for FICA taxes of  $250 (the employer has to match the amount paid by employees), FUTA taxes of 
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Unformatted text preview: $26 (0.8% × $3,268), and SUTA taxes of $176 (5.4% × $3,268). The amount of the increase (debit) to payroll tax expense is determined by adding the amounts of the three liabilities. Date Account Title and Description Ref. Debit Credit 20X0 Feb. 28 Payroll Tax Expense 452 FICA Taxes Payable (7.65% × $3,268) 250 Federal Unemployment Taxes Payable (0.8% × $3,268) 26 State Unemployment Taxes Payable (5.4% × $3,268) 176 To accrue employer's payroll taxes...
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