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Calculation of Taxable Earnings and Employer Payroll Taxes and Preparation of Journal Entry 1. Calculate the amount of taxable earnings for...

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.


Taxable Earnings


Employee NameCumulative Pay

Before Current

Earnings

Current

Gross Pay

Unemployment

Compensation

Social

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  

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