Question

The payroll register of Seaside Architecture Company indicates $870 of social security and $217 of medicare tax withheld on total salaries of $14,500 for the period. Assume earnings subject to state and federal unemployment compensation taxes are $5,250. at the federal rate of 0.8% and state rate of 5.4%.

Provide the journal entry to record the payroll tax expense for the period. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0". If required, round your answers to two decimal places.

Answer 1

Solution-

Account Titles & Explanation	Debit	Credit
Payroll Tax Expense	1,412.50
Social Security Taxes Payable		870.00
Medicare Taxes Payable		217.00
State Unemployment Tax Payable ($5,250*5.4%)		283.50
Federal Unemployment Tax Payable ($5,250*0.8%)		42.00