A company has one employee. All wages for September are subject to 6.2% FICA Social Security taxes and 1.45% FICA Medicaretaxes. The company's FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee.Gross Pay through August Gross Pay for September31$6,500$ 1,900Prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities.Enter answers in the tabs below.Payroll Taxes GeneralExpenseJournalPrepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities.Note: Round answers to 2 decimals.No1DateX Answer is not complete.September 30General JournalSalaries expenseFICA-Social security taxes payableFICA-Medicare taxes payableSalaries payable< Payroll Taxes ExpenseXGeneral JournalDebit1,900.00Credit117.8027.551,754.65

Answer:-Payroll expenses are the costs a company incurs to compensate employees for services…

Answered: A company has one employee. All wages…

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter13: Accounting For Payroll And Payroll Taxes

Section13.2: Recording Employer Payroll Taxes

Problem 1OYO

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CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL TAXES Portions of the payroll register for Barneys Bagels for the week ended July 15 are shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.6%, both of which are levied on the first 7,000 of earnings. The Social Security tax rate is 6.2% on the first 118,500 of earnings. The Medicare rate is 1.45% on gross earnings. Calculate the employers payroll taxes expense and prepare the journal entry to record the employers payroll taxes expense for the week ended July 15 of the current year.
CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL TAXES Earnings for several employees for the week ended March 12, 20--, are as follows: Calculate the employers payroll taxes expense and prepare the journal entry as of March 12, 20--, assuming that FUTA tax is 0.6%, SUTA tax is 5.4%, Social Security tax is 6.2%, and Medicare tax is 1.45%.
The following information about the payroll for the week ended December 30 was obtained from the records of Qualitech Co.: Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.8% Instructions 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries: a. December 30, to record the payroll. b. December 30, to record the employers payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, 35,000 is subject to unemployment compensation taxes. 2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries: a. December 30, to record the payroll. b. January 5, to record the employers payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all 675,000 in salaries is subject to unemployment compensation taxes.

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