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%, $13,460 of federal income taxes, $1,390 of medical insurance deductions, and $800 of union dues. No employee earned more than $7,000 in this first period.
1.1 Calculate the amounts (1. January 8 earnings subject to tax; 2. Tax Rate; 3. Tax Amount) for each of these four taxes of Regis Company: FICA-Social Security, FICA-Medicare, FUTA, SUTA.
Regis’s merit rating reduces its state unemployment tax rate to 3% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.60%. (Round your answers to 2 decimal places.)

1.2 Prepare the journal entry to record Regis Company's January 8 (employee) payroll expenses and liabilities. (Round your answers to 2 deciaml places.)

Jan 08 - Record the employee payroll expenses and liabilities for the first weekly pay period of the year.

2. Prepare the journal entry to record Regi's (employer) payroll taxes resulting from the January 8 payroll. Regi's merit rating reduces its state unemployment tax rate to 3% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.60% (Round your answers to 2 decimal places.)

Jan 8 - Record the employer's payroll expenses and liabilities for the first weekly pa period of the year.

Answer 1

Answer

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Explanation  

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