Answer:
Wages expense 240,000
medicare payable 3,600 credit
social security payable 14,400 credit
wages payable 222,000 credit
payroll taxes 20,205 debit
FUTA payable 280 credit
SUTA payable 1,925 credit
medicare payable 3,600 credit
social security payable 14,400 credit
Explanation:
MEDICARE 1.5% Social Security 6&
OASDI/HI $ 240000 3600 14400
FUTA&SUTA $ 35000 SUTA: 5.5% = 1925 FUTA 0.8% = 280
<u><em>NET WAGES: </em></u>
240,000 - 3,600 - 14,400 =222,000
payroll taxes:
the employe pays the same amount for OASDI and HI and also pays FUTA and SUTA
14,400 + 3,600 + 1,925 + 280 = 20,205
