Question

Section The payro recorde of a eompay ovd ended December or Earnings to End of Federat neome Taxes Previous Gross Pay ST.200 1,400 2600 United unon Employee Ronald Week $45,000 64,000 Pooo0 Dues Carol 216 उ Totals The FICA social security tax rate is 6.2 % and the FICA Medicare tax rate is 1.45% on al of this week's wages paid to each employee. The federal and state unemployment tax rates are 8% and 54% respectively, on the first 7.000 paid to each employee EQUIRED epare the journal entries to (a) accrue the salaries expense & related liabilities and record the payroll tax expense. Both entries should be FOR THE CURRENT PERIOD ONLY, NOT THE CUMULATIVE EARNINGS. Provide the journal entries e combined amounts of the employees NOT individually. E ACCOUNT/DESCRIPTION CREDI PR DEBIT

Answer 1

Date	Accounts	Debit	Credit
Dec 7	Salaries expense	2600
	Employee federal income taxes withholding payable		396
	Medical insurance withholding payable		275
	Union dues payable		30
	United way payable		35
	FICA social security taxes payable (2600* 6.2%)		161
	FICA Medicare taxes payable (2600*1.45%)		38
	Salaries payable		1665
Dec 7	Payroll tax expense	199
	FICA social security taxes payable		161
	FICA Medicare taxes payable		38

No Unemployment taxes are payable since the 7000 limit has crossed.