Question

The payroll register of Big House Cleaning Company showed total employee earnings of $2,800 for the payroll period ended July 14, 2019. Required: Compute the employer’s payroll taxes for the period. Use rates of 6.2 percent for the employer’s share of the social security tax, 1.45 percent for Medicare tax, 0.6 percent for FUTA tax, and 5.4 percent for SUTA tax. All earnings are taxable. Prepare a general journal entry to record the employer’s payroll taxes for the period Analyze: Which of the above taxes are paid by the employee and matched by the employer?

Answer 1

Solution . Tax Base Rate Social security 2800 6.20%. Amount 173.6 40.6 Medicare 2800 1o 45% FUTA 168 2800 0.60% SUTA 151.2 2800 5.40% 3802 Total General Journal Debit Credit Date July 14 2019 | 382.2 payroll taxes expense Social Security Tax payable Medecare tax payable Federal unemployment tax- 17306 40-6 16.8 . payable 15102 State unemployment tax payable