Question

The totals from the first payroll of the year are shown below. Total Earnings: $40,000 The amount of Social security tax is 6.20% The amount of Medicare tax is 1.45% The amount of federal tax income is 5% The amount of state income tax is 4% The total amount of union dues withheld is $500. The amount of the FUTA tax is .6% on the first $7,000 of wages. No employees have exceeded the maximum amount of wages taxable. The amount of the SUTA tax is 3.5% on the first $7,000 of wages. No employees have exceeded the maximum amount of wages taxable. Prepare the journal entry to record the employer payroll taxes

Answer 1

solution :

given

The totals from the first payroll of the year are shown below:

Total Earnings: $40,000 The amount of Social security tax is 6.20%

The amount of Medicare tax is 1.45% The amount of federal tax income is 5%

The amount of state income tax is 4% The total amount of union dues withheld is $500.

The amount of the FUTA tax is .6% on the first $7,000 of wages. No employees have exceeded the maximum amount of wages taxable.

The amount of the SUTA tax is 3.5% on the first $7,000 of wages. No employees have exceeded the maximum amount of wages taxable

journal entries to record the employer payroll taxes:

general	working	debit($)	credit($)
wages		40000
social security tax	6.2%*40000		2480
medicare tax	1.45%*40000		580
fedreal income tax	5%*40000		2000
state tax (income)	4%*40000		1600
FUTA tax	7000*06%		42
SUTA due	7000*3.5%		245
unions due			500
payroll payable (net)			32553