Total payroll was $960,000, of which $220,000 is exempt from Social Security tax because it represented amounts paid in excess of $118,500 to certain employees. Assume that the current F.I.C.A. tax (Social Security 6.2% and Medicare 1.45%) is 7.65% on an employee’s wages to $118,500 (Social Security ceiling) and 1.45% in excess of $118,500 (Medicare no ceiling). Income taxes in the amount of $180,000 were withheld, as was $18,000 in union dues. The amount paid to employees in excess of $7,000 (ceiling for FUTA and SUTA) was $800,000. The state unemployment tax is 3.5%, but Grich Company is allowed a credit of 2.3% by the state for its unemployment experience. The federal unemployment tax rate is 0.8% after state credit.   Instructions Prepare the journal entry for the salaries and wages paid. Prepare the journal entry to record the employer payroll taxes.

Calculation of Taxable Earnings and Employer Payroll Taxes and Preparation of Journal Entry 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 $128,400 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 Cumulative Pay Before Current Current Unemployment Social Employee Name Earnings Gross Pay Compensation Security Jordahl, Stephanie $6,480 $1,210 Keesling, Emily 6,110 1,100 Palmer, Stefan 55,310 2,390 Soltis, Robin 54,410 2,270 Stout, Hannah 29,130 2,010 Xia, Xu 127,400 3,520 1. Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes. Taxable Earnings Current Unemployment Social Employee Name Earnings Compensation Security Jordahl, Stephanie $ Keesling, Emily Palmer, Stefan Soltis, Robin Stout, Hannah Xia, Xu Total $ Social…

Carol Blane’s cumulative yearly earnings for the year are $29,000, counting her current payperiod salary amount of $4,500. Assume the FICA tax rate is 6.2 percent for Social Security, witha limit of $106,800, and 1.45 percent for Medicare, applied to all earnings. The FUTA tax is 0.6percent, with a limit of $7,000, and the SUTA tax is 5.4 percent, with a limit of $7,000. Theemployer's payroll tax expense entry will include a credit to: a. FICA Tax Payable for $279.00.b. FICA Tax Payable for $344.25.c. Federal Unemployment Tax Payable for $27.00.d. State Unemployment Tax Payable for $243.00.e. Federal Unemployment Tax Payable for $270.00.

The payroll of Sarasota Company for September 2019 is as follows. Total payroll was $492,000, of which $102,000 is exempt from Social Security tax because it represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both federal and state unemployment tax) was $400,000. Income taxes in the amount of $80,000 were withheld, as was $8,200 in union dues. The state unemployment tax is 3.5%, but Sarasota Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee's wages to $128,400 and 1.45% in excess of $128,400. No employee for Sarasota makes more than $135,000. The federal unemployment tax rate is 0.8% after state credit. Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No…