Question

On January 8, the end of the first weekly pay period of the year, Regis Company's payroll register showed that its employees earned $24,760 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%, $13,260 of federal income taxes, $1,410 of medical insurance deductions, and $820 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 Tax Rate Tax Amount FICA-Social Security FICA-Medicare FUTA SUTA 1.2 Prepare the journal entry to record Regis Company's January 8 (employee) payroll expenses and liabilities. (Round your answers to 2 decimal places.)

Answer 1

0 Calculation of following tares Particulars Amount (6) FICA societ security ($34 760 + $60840)x(0.062) 530 7-20 FICA medi care 241.20 ($24760 + $ 60840) x (0.0145) 513.60 Lederal unemployment tar C$24760+ $60840) x(0.006) state unemployment tan C$ 24760 + $ 60840) x (0.03) 2568.00 = (1-4) Prepare the journal enting to record the payroll expenses & liabilities Jan.8 Salariesą wages expense dle Dr 85640 To Salaries & wages payable 63601-60 TO FICA social sewrity tares payable 5307.20 TO FICA medicale taxes payable 1241.20 To federal income taxes payable 13260.00 To Employee medical insurance 1410.00 a payable To Employee union dues $20.00 payable record the payroll expenses & liabilities) Being