Question

On January 8, the end of the first weekly pay period of the year, Regis Company's payroll register showed that its employees earned $25,760 of office salaries and $70,840 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%, $13,160 of federal income taxes, $1,350 of medical insurance deductions, and $900 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 2% of the first $7.000 paid each employee. The federal unemployment tax rate is 0.60% (Round your answers to 2 decimal places.) 10 (2 . Tax Rate Tax Amount Hegis company's 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 that Journal entry worksheet

Answer 1

Regis Company’s:
Tax	January 8 earnings subject to tax	Tax Rate	Tax Amount
FICA-Social Security	96,600	6.20%	5989.20
FICA-Medicare	96,600	1.45%	1400.70
FUTA	96,600	0.60%	579.60
SUTA	96,600	2.00%	1932.00
1.2
Date	General Journal	Debit	Credit
Jan 8	Office salaries expense	25,760.00
	Sales salaries expense	70,840.00
	FICA—Social sec. taxes payable		5,989.20
	FICA—Medicare taxes payable		1,400.70
	Employee fed. inc. taxes payable		13,160.00
	Employee medical insurance payable		1,350.00
	Employee union dues payable		900.00
	Salaries payable		73,800.10
2
Date	General Journal	Debit	Credit
Jan 8	Payroll taxes expense	9,901.50
	FICA—Social sec. taxes payable		5,989.20
	FICA—Medicare taxes payable		1,400.70
	State unemployment taxes payable		1,932.00
	Federal unemployment taxes payable		579.60