At the end of each month, a company pays its employees. Payroll information below is for January, the first month of the fiscal year. Assume that none of the employees exceeds the Federal unemployment tax maximum salary of $7,000 in January. Salaries$1,000,000 Federal and state income taxes withheld 150,000 Federal unemployment tax rate 0.80%State unemployment tax rate (after FUTA deduction) 5.40%Social Security (FICA) tax rate 7.65% Record salaries expense and payroll tax expense for the January pay period. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 1- record the employee salary expense and withholdings 2- record the employer payroll taxes

When a company records the compensation of its employees, such type of accounting is known as…

Answered: At the end of each month, a company…

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter8: Employer Taxes, Payments, And Reports

Section: Chapter Questions

Problem 2PA

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At the end of each month, a company pays its employees. Payroll information below is for January, the first month of the fiscal year. Assume that none of the employees exceeds the Federal unemployment tax maximum salary of $7,000 in January.


Salaries	$	1,000,000
Federal and state income taxes withheld		150,000
Federal unemployment tax rate		0.80	%
State unemployment tax rate (after FUTA deduction)		5.40	%
Social Security (FICA) tax rate		7.65	%

Record salaries expense and payroll tax expense for the January pay period. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

1- record the employee salary expense and withholdings

2- record the employer payroll taxes

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