Question

On January 8, the end of the first weekly pay period of the year, Regis Company's employees earned $26,760 of office salaries and $60,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $13,160 of federal income taxes, $1,430 of medical insurance deductions, and $920 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 state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6% 1.2 Prepare the journal entry to record Regis Company's January 8 employee payroll expenses and liabilities. 2. Prepare the journal entry to record Regis's employer payroll taxes resulting from the January 8 payroll. Regis's state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6% Answer is not complete Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Calculate below the amounts for each of these four taxes of Regis Company. Regis's state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. (Round your answers to 2 decimal places.) Regis Company's: January 8 earnings subject to tax Tax Tax Rate Tax Amount FICA-Social Security FICA-Medicare 87,600 6.20% 5,431.20 87,600 1.45% 1,270.20 FUTA 87,600 0.60% 525.60 87,600 SUTA 5.40% 4,730.40

Answer 1

Regis Company’s:
Tax	January 8 earnings subject to tax	Tax Rate	Tax Amount
FICA-Social Security	87,600	6.20%	5431.20
FICA-Medicare	87,600	1.45%	1270.20
FUTA	87,600	0.60%	525.60
SUTA	87,600	5.40%	4730.40
1.2
Date	General Journal	Debit	Credit
Jan 8	Office salaries expense	26,760.00
	Sales salaries expense	60,840.00
	FICA—Social sec. taxes payable		5,431.20
	FICA—Medicare taxes payable		1,270.20
	Employee fed. inc. taxes payable		13,160.00
	Employee medical insurance payable		1,430.00
	Employee union dues payable		920.00
	Salaries payable		65,388.60
2
Date	General Journal	Debit	Credit
Jan 8	Payroll taxes expense	11,957.40
	FICA—Social sec. taxes payable		5,431.20
	FICA—Medicare taxes payable		1,270.20
	Federal unemployment taxes payable		525.60
	State unemployment taxes payable		4,730.40