Question

McLoyd Company completed the salaries and wages payroll for March. The payroll provided the following details: Salaries and wages earned Employee income taxes withheld FICA taxes withheld $430,000 39,775 30,745 2,990 Unemployment taxes Required: 1. Considering both employee and employer payroll taxes, use the preceding information to calculate the total labor cost for the company for March 2, & 3. Prepare the journal entry to record the payroll for March, including employee deductions (but excluding employer payroll taxes) and record employer's FICA taxes and unemployment taxes. Employees were paid in March but amounts withheld were not yet remitted. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Considering both employee and employer payroll taxes, use the preceding information to calculate the total labor cost for the company for March. Total Labor Cost Req 1 > Req 2 and 3

Answer 1

Answer:

1. Total Labor Cost:

= $430,000 (Salary) + $30,745 (FICA taxes with held) + $2,990(Unemployment Taxes) = $463,735

2.

Date	Particulars	Debit ($)	Credit ($)
March 31	Salaries and Wages Expense	$430,000
	With held Income Taxes Payable		$39,775
	FICA taxes payable		$30,745
	Cash		$359,480
	(To record the payroll expense)

Date	Particulars	Debit ($)	Credit ($)
March 31	Payroll Tax Expense	$33,735
	FICA Taxes Payable		$30,745
	Unemployment Taxes Payable		$2,990
	(To record the payroll tax expense)