Answer:
Given that,
Salaries = $100,000
FICA taxes withheld = $7,650
Income taxes withheld = $18,000
Federal unemployment taxes = $450
State unemployment taxes = $2,100
Therefore,
Payroll Tax Expense:
= FICA taxes withheld + Federal unemployment taxes + State unemployment taxes
= $7,650 + $450 + $2,100
= $10,200
The journal entry is as follows:
Payroll Tax Expense A/c Dr. $10,200
To FICA taxes withheld $7,650
To Federal unemployment taxes $450
To State unemployment taxes $2,100
(To record accrual of employer’s payroll taxes)
