Question

The payroll register of Heritage Co. indicates $4,200 of social security withheld and $1,050 of Medicare tax withheld on total salaries of $70,000 for the period. Earnings of $12,000 are subject to state and federal unemployment compensation taxes at the federal rate of 0.8% and the state rate of 5.4%.
Provide the journal entry to record the payroll tax expense for the period. If an amount box does not require an entry, leave it blank.

a. Payroll Tax Expense
b. Social Security Tax Payable
c. Medicare Tax Payable
d. State Unemployment Tax Payable e. Federal Unemployment Tax Payable

Answer 1

Answer:

General Journal                                                          Debit                    Credit

Payroll Tax expense                                                   $ 5,994

         Social Security tax Payable                                                           $ 4,200

         Medicare Tax Payable                                                                   $ 1,050

         State Unemployment Tax Payable                                                 $  648

         Federal Unemployment Tax Payable                                               $  96

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