Question

Barbara Muller Services (BMS) pays its employees monthly. The payroll information listed below is for January 2021, the first month of BMS's fiscal year. Assume none of the employees' earnings reached $7,000 during the month. Salaries Federal income taxes to be withheld Federal unemployment tax rate (FUTA) State unemployment tax rate (after FUTA deduction) Social security tax rate Medicare tax rate $ 88,000 26,000 0.80% 5.40% 6.2% 1.45% The journal entry to record payroll for the January 2021 pay period will include a debit to payroll tax expense of: Multiple Choice $6.732. $12,188 o (55 268 $56.768

Answer 1

Answer
Option B :$ 12,188 is correct
Social security tax	$       5,456	88000*6.2%
Medicare tax	$       1,276	88000*1.45%
Federal unemployment tax	$          704	88000*0.8%
State unemployment tax	$       4,752	88000*5.4%
Debit to payroll tax expense	$     12,188
Option B :$ 12,188 is correct
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