Question

On January 8, the end of the first weekly pay perid of the year, Regis Company's payroll register showed that its employees earned $27,760 of office salaries and $60,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.20%, FICA Medicare taxes at the rate of 1.45%, $13,460 of federal income taxes, $1,450 of medical insurance deductions, and $860 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 merit rating reduces its state unemployment tax rate to 3% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.60%. (Round your answers to 2 decimal places.) Regis Company's: January 8 earnings subject to tax Таx Tax Rate Tax Amount FICA-Social Security FICA-Medicare FUTA SUTA

Answer 1

1.

	January 8 earnings subject to tax	Tax rate	Tax amount
FICA - Social security	88600	6.20%	5493.20
FICA - Medicare	88600	1.45%	1284.70
FUTA	88600	0.6%	531.60
SUTA	88600	3.00%	2658.00

2.

Date	General Journal	Debit	Credit
Jan 08	Office salaries expense	27760
	Sales salaries expense	60840
	FICA- social sec. taxes payable		5493.20
	FICA-Medicare taxes payable		1284.70
	Employee fed. Inc. taxes payable		13460
	Employee medical insurance payable		1450
	Employee union dues payable		860
	Salaries payable		66052.10
Jan 08	Payroll taxes expense	9967.50
	FICA- social sec. taxes payable		5493.20
	FICA-Medicare taxes payable		1284.70
	Federal unemployment taxes payable		531.60
	State unemployment taxes payable		2658.00