Question

A company has a lot of employees. During January, total salaries for employees is $100.000 The employees to have world from the FCA Social Security st ate of 62% FICA Care Tax of 145.515.000 of Federal income Tax 55.000 of Medical e deductions and $2000 of pension deductions As the company has to pay FICA Social Security Tax and FICA MedCaretax for these samples in addition, the company has to pay Federal Unemployment Tax 106 And State Unemployment a t 3.4% How much is to pay for the employees? it ? Preth o d the companys January a Datec ount Title n d Credit Debit d liabilit Prepare the second the compan Date counte a Debit n Credit

Answer 1

Hence.

1) Prepare the JE to record the Company's January Salary Expenses & Liabilities Particulars Debit Credit Date XX-January-XXX 100000 Salaries Expenses FICA Social Security Taxes 6.2% (Employee) FICA Medicare Taxes 1.45% (Employee) Federal Income Tax Medical Insurance Pension Deductions Salary Payable A/C (Being & Employees salary expenses, deduction and payable for the month of January - XXXX) 6200 1450 15000 5000 2000 70350 100000 100000 2) Prepare the JE to record the Company's January Payroll Tax Expenses & Liabilities Particulars Debit Credit Date XX-January-XXX FICA Social Security Taxes 6.2% (Employer) FICA Medicare Taxes 1.45% (Employer) Federal unemployment tax 0.6% State unemployment tax 3.4% FICA Social Security Taxes 6.2% (Employee) FICA Medicare Taxes 1.45% (Employee) Federal Income Tax Medical Insurance Pension Deductions Payroll Tax Payable Alc (Being 8 Employees Company contribution of payroll tax expenses, total payroll tax liabilities of the company for the month of January - XXXX) 6200 1450 600 3400 6200 1450 15000 5000 2000 41300 41300 41300 3) Net Salary payable for the month of January 70,350/- Ratio Amount 6.20% 1.45% 6.20% 1.45% 0.60% 3.40% Notes: Salary Expense Particulars 100000 FICA Social Security Taxes 6.2% (Employee) 100000 FICA Medicare Taxes 1.45% (Employee) 100000 FICA Social Security Taxes 6.2% (Employer) 100000 FICA Medicare Taxes 1.45% (Employer) 100000 Federal unemployment tax 0.6% 100000 State unemployment tax 3.4% Calculation = 100000*6.20% =100000*1.45% = 100000*6.20% =100000*1.45% =100000*0.60% =100000*3.40% 6200 1450 6200 1450 600 3400

Total Net Salary payable for 8 Employees of the company for January: 70,350/-

1) Prepare the Je to record the Company's January Salary Expenses & Liabilities Particulars Debit Credit Date XX-January-XXX 100000 Salaries Expenses FICA Social Security Taxes 6.2% (Employee) FICA Medicare Taxes 1.45% (Employee) Federal Income Tax Medical Insurance Pension Deductions Salary Payable A/C (Being 10 Employees salary expesnes, deduction and payable for the month of January - XXXX) 6200 1450 15000 5000 2000 70350 100000 100000 2) Prepare the JE to record the Company's January Payroll Tax Expenses & Liabilities Particulars Debit Credit Date XX-January-XXX FICA Social Security Taxes 6.2% (Employer) FICA Medicare Taxes 1.45% (Employer) Federal unemployement tax 0.6% State unemployement tax 3.4% FICA Social Security Taxes 6.2% (Employee) FICA Medicare Taxes 1.45% (Employee) Federal Income Tax Medical Insurance Pension Deductions Payroll Tax Payable A/C (Being 10 Employees Company contribution of payroll tax expesnes, total payroll tax liabilites of the company for the month of January - XXXX) 6200 1450 600 3400 6200 1450 15000 5000 2000 41300 41300 41300 3) Net Salary payable for the month of January 70,350/- Amount Notes: Ratio/Amount Salary Expnes Particulars 6.20% 100000 FICA Social Security Taxes 6.2% (Employee) 1.45% 100000 FICA Medicare Taxes 1.45% (Employee) 15,000 100000 Federal Income Tax 5,000 100000 Medical Insurance 2,000 100000 Pension Deductions 6.20% 100000 FICA Social Security Taxes 6.2% (Employer) 1.45% 100000 FICA Medicare Taxes 1.45% (Employer) 0.60% 100000 Federal unemployement tax 0.6% 3.40% 100000 State unemployement tax 3.4% Calculation =100000*6.20% =100000*1.45% =100000-15000 =100000-5000 =100000-2000 =100000*6.20% =100000*1.45% =100000*0.60% =100000*3.40% 6200 1450 15000 5000 2000 6200 1450 600 3400

1) Prepare the JE to record the Company's January Salary Expenses & Liabilities Particulars Debit Credit Date Xx-January-XXX Salaries Expenses 100000 FICA Social Security Taxes 6.2% (Employee) FICA Medicare Taxes 1.45% (Employee) 6200 1450 Federal Income Tax 15000 Medical Insurance 5000 Pension Deductions 2000 Salary Payable A/c 70350 (Being 10 Employees salary expenses, deduction and payable for the month of January - XXXX) 100000 100000 2) Prepare the JE to record the Company's January Payroll Tax Expenses & Liabilities Particulars Debit Credit Date FICA Social Security Taxes 6.2% (Employer) FICA Medicare Taxes 1.45% (Employer) Federal unemployment tax 0.6% xx-January-XXX 6200 1450 600 State unemployment tax 3.4% FICA Social Security Taxes 6.2% (Employee) 3400 6200 FICA Medicare Taxes 1.45% (Employee) 1450 Federal Income Tax 15000 Medical Insurance 5000 Pension Deductions 2000 Payroll Tax Payable A/c (Being 10 Employees Company contribution of payroll tax expenses, total payroll tax 41300 liabilities of the company for the month of January - XXXX) 41300 41300 3) Net Salary payable for the month of January 70,350/- Notes: Ratio Salary Expense Particulars Calculation Amount 100000 FICA Social Security Taxes 6.2% (Employee) 100000*6.20 % - 100000*1.45% - 100000*6.20 % - 100000*1.45% 6.20% 6200 100000 FICA Medicare Taxes 1.45% (Employee) 1450 1.45% 6.20% 100000 FICA Social Security Taxes 6.2% (Employer) 6200 100000 FICA Medicare Taxes 1.45% (Employer) 1450 1.45% 0.60% 100000 Federal unemployment tax 0.6% 100000*0.60% 600 - 100000*3.40% 3.40% 100000 State unemployment tax 3.4% 3400