Answer: a).The employer's payroll taxes amounts to $9,800.00
b). The journal entries are a debit to payroll taxes with $9,800, and a credit of $6,600 to security taxes payable; $1,650 to medicare taxes payable; $1,350 to state unemployment tax payable; $200 to federal unemployment taxe payable.
Explanation: Employer Payroll taxes are taxes which the employer must pay tothe employees alongsidetheir salaries.
To calculate the payroll taxes allthe taxes are summed up.
Social security tax = $110,000 × 6% = $6,600
Medicare tax = $110,000 × 1.5% = $1,650
State unemployment tax = $25,000 × 5.4% = $1,350
Federal unemployment tax = $25,000 × 0.8% = $200
Total employer payroll taxes = $9,800
