The payroll register of Seaside Architecture Company indicates $870 of social security and $217 of Medicare tax withheld on total salaries of $14,500 for the period. Assume earnings subject to state and federal unemployment compensation taxes are $5,250 at the federal rate of 0.8% and state rate of 5.4%. Prepare the journal entry to record the payroll tax expense for the period.

Question

Mathematics

Pansy

Today, 03:52

The payroll register of Seaside Architecture Company indicates $870 of social security and $217 of Medicare tax withheld on total salaries of $14,500 for the period. Assume earnings subject to state and federal unemployment compensation taxes are $5,250 at the federal rate of 0.8% and state rate of 5.4%. Prepare the journal entry to record the payroll tax expense for the period.

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Jacobson · Answer 1

Solution:

Account Titles & Explanation Debit Credit

Payroll Tax Expense 1,412.50

Social Security Taxes Payable 870.00

Medicare Taxes Payable 217.00

State Unemployment Tax Payable ($5,250*5.4%) 283.50

Federal Unemployment Tax Payable ($5,250*0.8%) 42.00

Note:

Payroll tax expense is calculated by adding up soc security, medicare tax, state and fed unemployment.