Question

Journalie Payroll Tax The payroll register of Patel Engineering Co. indicates $2,604 of social security withheld and $651.00 of Medicare tax withheld on total salaries of $43,400 for the period. Earnings of $13,500 are subject to state and federal unemployment compensation taxes at the federal rate of 0.6% and the state rate of 5.4%. Provide the journal entry to record the payroll tax expense for the period. If an amount box does not require an entry, leave it blank. Round to two decimal places

Answer 1

Credit Debit 43,400 S Account Title and Explanation Salaries expense Social securities tax payable Medicare Tax payable State Unemployement tax payable Fedral unemployement tax payable Salaries Payable $ $ S S $ 2,604 651 729 81 39,335 Working Notes: State Unemployement tax payable = $13,500*5.4% = $729 Fedral Unemployement tax payable = $13,500*0.6% = $81 Salaries payable = $43,400-S2,604-5651-8729-881 = $39,335