Question

Problem 9-2A Entries for payroll transactions LO P2, P3 On January 8, the end of the first weekly pay period of the year, Regis Company's payroll register showed that its employees earned $21,760 of office salaries and $70,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.20%, FICA Medicare taxes at the rate of 1.45%, $12,960 of federal income taxes, $1,340 of medical insurance deductions, and $940 of union dues. No employee earned more than $7,000 in this first period. Required: 1.1 Calculate below the amounts for each of these four taxes of Regis Company. Regis's merit rating reduces its state unemployment tax rate to 3% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.60%. (Round your answers to 2 decimal places.) Regis Company's: Tax January 8 earnings subject to tax Tax Rate Tax Amount FICA-Social Security FICA-Medicare FUTA SUTA

Answer 1

Regis Company’s:
Tax	January 8 earnings subject to tax	Tax Rate	Tax Amount
FICA-Social Security	92,600	6.20%	5741.20
FICA-Medicare	92,600	1.45%	1342.70
FUTA	92,600	0.60%	555.60
SUTA	92,600	3.00%	2778.00
1.2
Date	General Journal	Debit	Credit
Jan 8	Office salaries expense	21,760.00
	Sales salaries expense	70,840.00
	FICA—Social sec. taxes payable		5,741.20
	FICA—Medicare taxes payable		1,342.70
	Employee fed. inc. taxes payable		12,960.00
	Employee medical insurance payable		1,340.00
	Employee union dues payable		940.00
	Salaries payable		70,276.10
2
Date	General Journal	Debit	Credit
Jan 8	Payroll taxes expense	10,417.50
	FICA—Social sec. taxes payable		5,741.20
	FICA—Medicare taxes payable		1,342.70
	State unemployment taxes payable		2,778.00
	Federal unemployment taxes payable		555.60