Answer&Explanation:
We debit the wages expense, credit all the deduction as payable and cash for the net pay.
Wages Expense 530,500 credit
Cash 274,426 credit
FICA tax payable 35,065 credit
Wages Federal income payable 160,000 credit
Wages State Income payabe 15,915 credit
Health insurance payable 19,500 credit
United Fund payable 25,594 credit
--payroll for the year--
We debit payroll tax expense and credit all type of taxes as payable:
Payroll tax expense 39569,75 debit
OASDI payable 27,373 credit (441,500)
Medicare payable 7692,25 credit (530,500 x 1.45%)
SUTA payable 3,412.5 credit (136,500 x 2.5%)
FUTA payable 1,092 credit (136,500 x0.8%)
--employer payroll taxes--
We debit all payables taxes and credit cash for the total
Wages Federal income payable 160,000 debit
Wages State Income payabe 15,915 debit
Health insurance payable 19,500 debit
United Fund payable 25,594 debit
FUTA payable 1,092 debit
SUTA payable 3,412.5 debit
Medicare payable 7692,25 debit
OASDI payable 27,373 debit
Cash 295,644.75 credit
--payment of payroll and deduction--
