Question

During January, a company incurs employee salaries of $1.9 million. Withholdings in January are $145,350 for the employee portion of FICA, $285,000 for federal income tax, $118,750 for state income tax, and $19,000 for the employee portion of health insurance (payable to Company B). The company incurs an additional $117,800 for federal and state unemployment tax and $57,000 for the employer portion of health insurance.

Required:
1. Record the employee salary expense, withholdings, and salaries payable.
2. Record the employer-provided fringe benefits.
3. Record the employer payroll taxes.

Answer 1

January 31st

Salaries expense = 1,900,000 (de)

Salaries payable = 1,331,900 (cre)

Income tax payable = 403,750 (cre)

FICA tax payable = 145,350 (cre)

Accounts payable = 19,000 (cre)

January 31st

Salaries expense = 57,000 (de)

Accounts payable = 57,000 (cre)

January 31st

Payroll tax expense = 263,150 (de)

FICA tax payable = 145,350 (cre)

Unemployment tax payable = 117,800 (cre)

Step-by-step explanation:

Answer 2

Check the following information

Step-by-step explanation:

Debit Salaries Expense $1,900,000

Credit FICA Payable $145,350

Credit Federal Income Tax Withholding Payable $285,000

Credit State Income Tax Withholding Payable $118,750

Credit Health Insurance Payable $19,000

Credit Salaries Payable $1,331,900

Debit Payroll Tax Expense $320,150

Credit FICA Payable $145,350

Credit Unemployment Taxes Payable $117,800

Credit Health Insurance Payable $57,000