Question

Darius Company has the following information for the pay period of January 15 - 31, 20xx. Gross payroll $20,000 Federal income tax withheld Social security rate $2,500 6% Federal unemployment tax rate .8% Medicare rate 1.5% State unemployment tax rate 5.4% Assuming no employees are subject to ceilings for their earnings, calculate Salaries Payable and Employer Payroll Taxes Payable. ANS:

Answer 1

1
Gross payroll	20000
Less: Deductions
Social Security tax payable	1200	=20000*6%
Medicare tax payable	300	=20000*1.5%
Federal Income tax payable	2500
Total Deductions	4000
Salaries payable	16000
2
Social Security tax payable	1200	=20000*6%
Medicare tax payable	300	=20000*1.5%
Federal Unemployment tax payable	160	=20000*0.8%
State Unemployment tax payable	1080	=20000*5.4%
Employer payroll taxes payable	2740