Taxable Earnings Cumulative Pay Current Before Current Earnings $ 6,650 6,370 33,460 6,930 127,050 35,470 38,675 Weckly Unemployment Social Earnings Compensation Security 008 $ Employee Name Click, Katelyn Coombs, Michelle Fauss, Erin Lenihan, Marcus McMahon, Drew Newell, Marg Stevens, Matt 720 1,200 900 4,440 1,110 1,260

Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter13: Accounting For Payroll And Payroll Taxes
Section13.3: Reporting Withholding And Payroll Taxes
Problem 1WT
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CALCULATING PAYROLL TAXES EXPENSE AND PREPARING JOURNAL
ENTRY
Selected information from the payroll register of Ebeling's Dairy
for the week ended July 7, 20--, is shown below. The SUTA tax rate is
5.4%, and the FUTA tax rate is 0.6%, both on the first $7,000 of earnings.
Social Security tax on the employer is 6.2% on the first $128,400 of
earnings, and Medicare tax is 1.45% on gross earnings.

REQUIRED
1. Calculate the total employer payroll taxes for these employees.
2. Prepare the journal entry to record the employer payroll taxes as
of July 7, 20--

Taxable Earnings
Cumulative Pay Current
Before Current
Earnings
$ 6,650
6,370
33,460
6,930
127,050
35,470
38,675
Weckly Unemployment Social
Earnings Compensation Security
008 $
Employee Name
Click, Katelyn
Coombs, Michelle
Fauss, Erin
Lenihan, Marcus
McMahon, Drew
Newell, Marg
Stevens, Matt
720
1,200
900
4,440
1,110
1,260
Transcribed Image Text:Taxable Earnings Cumulative Pay Current Before Current Earnings $ 6,650 6,370 33,460 6,930 127,050 35,470 38,675 Weckly Unemployment Social Earnings Compensation Security 008 $ Employee Name Click, Katelyn Coombs, Michelle Fauss, Erin Lenihan, Marcus McMahon, Drew Newell, Marg Stevens, Matt 720 1,200 900 4,440 1,110 1,260
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