Question

Journalize Payroll Tax The payroll register of Longboat Co. indicates $5,400 of social security withheld and $1,350 of Medicare tax withheld on total salaries of $90,000 for the period. Earnings of $10,000 are subject to state and federal unemployment compensation taxes at the federal rate of 0.6% and the state rate of 5.4%. Provide the journal entry to record the payroll tax expense for the period. If an amount box does not require an entry, leave it blank.

Answer 1

Step-by-step explanation:

Dr Payroll Tax Expense $7,350

Cr Social Security Taxes Payable $5,400

Cr Medicare Taxes Payable $1,350

Cr State Unemployment Tax Payable($10,000 * 5.4%) $540

Cr Federal Unemployment Tax Payable($10,000 * 0.6%) $60