Question

The payroll register of Konrath Co. indicates $13,200 of social security withheld and $3,300 of Medicare tax withheld on total salaries of $220,000 for the period. Earnings of $35,000 are subject to state and federal unemployment compensation taxes at the federal rate of 0.8% and the state rate of 5.4%. On December 31, provide the journal entry to record the payroll tax expense for the period. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Dr Payroll Tax Expense $18,670

Cr Social Security Taxes Payable $13,200

Cr Medicare Taxes Payable $3,300

Cr State Unemployment Payable $280

Cr Federal Unemployment Payable $1,890

Step-by-step explanation:

Preparation of the journal entry to record the payroll tax expense for the period

December 31

Dr Payroll Tax Expense $18,670

($13,200+$3,300+$280+$1,890)

Cr Social Security Taxes Payable $13,200

Cr Medicare Taxes Payable $3,300

Cr State Unemployment Payable $280

($35,000 x 0.8% = $280)

Cr Federal Unemployment Payable $1,890

($35,000 x 5.4% = $1,890)

(Record Payroll Taxes for the pay period)