Question

Employer payroll taxes: Multiple Choice Represent the social security taxes withheld from employees. Are payable for up to a maximum $117,000 of employee earnings. Are paid by the employee. Are added expenses beyond that for the wages and salaries earned by employees. Represent the federal taxes withheld from employees.

Answer 1

Answer:

Are added expenses beyond that for the wages and salaries earned by employees

Explanation:

The employer payroll taxes are the taxes which are to be computed as a percentage of the wages salaries earned by the employees. It is divided into two types - social security taxes i.e 6.2% and the medicare taxes 1.45%

And the journal entry is

Payroll tax expense A/c Dr XXXXX

To Social security tax A/c  XXXXX

To Medicate tax A/c  XXXXX

To State Unemployment tax payable  XXXXX

To Federal Unemployment tax payable XXXXX

(Being the payroll tax expense is recorded)

Moreover, it is an added expenses