Question

Example 6-7

The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of 3.0%):

	Debit	Credit
Payroll Taxes	2,785.81
FICA Taxes Payable—OASDI		1,535.29
FICA Taxes Payable—HI		359.06
FUTA Taxes Payable		148.58
SUTA Taxes Payable		742.88

Vulcra, Inc., has a semimonthly payroll of $67,000 on September 15, 20--. The total payroll is taxable under FICA Taxes-HI; $63,850 is taxable under FICA Taxes-OASDI; and $10,300 is taxable under FUTA and SUTA. The state contribution rate for the company is 4.1%. The amount withheld for federal income taxes is $9,911. The amount withheld for state income taxes is $1,410.

Answer 1

Vulcra, Inc., Journal Enteries Debit in $ Credit in $ Particulars Date Sep-15 Wages a/c Dr. 67000 To FICA Payable- HI 971.5 To FICA Tax Payable - OASDI To FIT Payable 3958.7 9911 To SIT Payable 1410 To Cash 50748.8 (To record wages payment) 67000 X 1.45% 971.50 63850 x 6.2% 3958.70 10300 x 6% 61.80 10300 x 3% 309 Payroll Tax Expense a/c Dr. 5857.2 To FICA Tax Payable - OASDI 3958.7 To FUTA Payable 618 To SUTA Payable 309 To FICA Payable- HI 971.5 To record payroll tax)