Final answer:
Payroll taxes are taxes that employers are required to pay when they pay salaries to their staff. In this journal entry, the salaries and wages earned, employee income taxes withheld, FICA taxes withheld, and unemployment taxes are specified.
Step-by-step explanation:
Payroll taxes are taxes that employers are required to pay when they pay salaries to their staff. There are two types of payroll taxes: deductions from an employee's wages and taxes paid by the employer based on the employee's wages.
In the given journal entry, the salaries and wages earned amount to $420,000. Employee income taxes withheld are $38,850, FICA taxes withheld are $30,030, and unemployment taxes are $2,920.
The salaries and wages earned represent the amount paid to employees for their work. Employee income taxes withheld refer to the amount of income taxes deducted from employees' paychecks. FICA taxes withheld are the taxes deducted for Social Security and Medicare. Unemployment taxes are the amount paid by employers to fund unemployment benefits.