Calculation of Taxable Earnings and Employer Payroll Taxes and Preparation of Journal Entry
1. Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes.
2. Prepare the journal entry to record the employer's payroll taxes as of September 14, 20--. Round your answers to the nearest cent. If an amount box does not require an entry, leave it blank.
Selected information from the payroll register of Joanie's Boutique for the week ended September 14, 20--, is as follows. Social Security tax is 6.2% on the first $118,500 of earnings for each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings.
Employee NameCumulative Pay
SecurityJordahl, Stephanie $6,680 $1,190 Keesling, Emily6,120 1,060 Palmer, Stefan55,240 2,360 Soltis, Robin54,420 2,240 Stout, Hannah28,810 2,080 Xia, Xu108,050 11,430
Recently Asked Questions
- What are sales discounts and are they necessary. Would this account be on the financial statement.
- Place these events of the Western Therate into Chronological order. Battle of Stalingrad Storming of Normandy Invasion of Poland Kristallnacht begins Battle of
- Explain why senior citizens often obtain special price discounts