Answer and Explanation:
a. The computation of an employer's payroll taxes is shown below:-
Employer's payroll taxes = Social Security tax payable + Medicare tax payable + State Unemployment tax payable + Federal Unemployment tax payable
= ($560,000 × 6%) + ($560,000 × 1.5%) + ($60,000 × 0.6%) + ($60,000 × 0.6%)
= $33,600 + $8,400 + $3,240 + $360
= $45,600
b. The Journal entry is shown below:-
Payroll tax expense $ Dr, $45,600 -
To Social Security tax payable $33,600
To Medicare tax payable $8,400
To State Unemployment tax payable $3,240
To Federal Unemployment tax payable $360
(Being accrual of payroll taxes is recorded)
