Question

two

On January 8, the end of the first weekly pay period of the year, Regis Company's payroll register showed that its employees earned $21,760 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%, $12,760 of federal income taxes, $1,330 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 4% 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 Tax 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.) View transaction list 1 Record the employee payroll expenses and liabilities for the first weekly pay period of the year.

Answer 1

Regis Company’s:
Tax	January 8 earnings subject to tax	Tax Rate	Tax Amount
FICA-Social Security	82,600	6.20%	5121.20
FICA-Medicare	82,600	1.45%	1197.70
FUTA	82,600	0.60%	495.60
SUTA	82,600	4.00%	3304.00
1.2
Date	General Journal	Debit	Credit
Jan 8	Office salaries expense	21,760.00
	Sales salaries expense	60,840.00
	FICA—Social sec. taxes payable		5,121.20
	FICA—Medicare taxes payable		1,197.70
	Employee fed. inc. taxes payable		12,760.00
	Employee medical insurance payable		1,330.00
	Employee union dues payable		860.00
	Salaries payable		61,331.10
2
Date	General Journal	Debit	Credit
Jan 8	Payroll taxes expense	10,118.50
	FICA—Social sec. taxes payable		5,121.20
	FICA—Medicare taxes payable		1,197.70
	State unemployment taxes payable		3,304.00
	Federal unemployment taxes payable		495.60