Lee Financial Services pays employees monthly. Payroll information is listed below for January 2024, the first month of Lee’s fiscal year. Assume that none of the employees exceeded any relevant base of pay, such that all benefit percentages apply to the entire $490,000 payroll.Salaries$ 490,000Federal income taxes to be withheld98,000Federal unemployment tax rate0.60%State unemployment tax rate5.40%Social security tax rate6.20%Medicare tax rate1.45%Required:Calculate the income and payroll taxes for the January 2024 pay period. Prepare the appropriate journal entries to record salaries expense and payroll tax expense for the January 2024 pay period. Salaries are not yet paid.

Salaries payable is determined as $354,515. Payroll tax expense is determined as $66,885.…

Answered: Lee Financial Services pays employees…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter8: Employer Taxes, Payments, And Reports

Section: Chapter Questions

Problem 1E

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Salaries	$ 490,000
Federal income taxes to be withheld	98,000
Federal unemployment tax rate	0.60%
State unemployment tax rate	5.40%
Social security tax rate	6.20%
Medicare tax rate	1.45%

Required:

Calculate the income and payroll taxes for the January 2024 pay period. Prepare the appropriate journal entries to record salaries expense and payroll tax expense for the January 2024 pay period. Salaries are not yet paid.

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