Question

On January 8, the end of the first weekly pay period of the year, Regis Company's payroll register showed that its employees earned $22,760 of office salaries and $60,840 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%, $13,660 of federal income taxes, $1,450 of medical insurance deductions, and $800 of union dues. No employee earned more than $7.000 in this first period. Required: 11 Calculate below the amounts for each of these four taxes of Regis Company Regis's merit rating reduces its state unemployment tax rate to 5% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.60% (Round your answers to 2 decimal places) January samnings Tax Amount FICA Social Security FICA Medicare PUTA 1.2 Prepare the journal entry to record Regis Company's January 8 (employee) payroll expenses and liabilities. (Round your answers to 2 decimal places.) View transaction list Journal entry worksheet

Answer 1

Answer 1.1:

For FICA earnings subject to tax = 22760 + 60840 = $83,600

FICA social security tax amount = 83600 * 6.20% = $5183.20

FICA medicare Tax amount = 83600 * 1.45% = $1212.20

Tax Tax Rate Tax Amount January 8 earnings subject to tax $83,600 $83,600 FICA-Social Security FICA-Medicare FUTA SUTA 6.20% 1.45% 5.00% 0.60% $5,183.20 $1,212.20 $0.00 $0.00 $o

Answer 1.2:

Credit Date January. 8 Debit $22,760.00 $60,840.00 General Journal Salaries and Wages - Office Salaries and Wages - Sales FICA-Social security Tax Payable FICA-Medicare Tax Payable Federal Income Tax withhoding Payable Medical Insurance Payable Union Dues Payable Salaries and wages Payable $5,183.20 $1,212.20 $13,660.00 $1,450.00 $800.00 $61,294.60 (to record payroll expense and liabilities)