Question

The payroll register of Seaside Architecture Company indicates $840 of Social Security and $211 of Medicare tax withheld on total salaries of $15,400 for the period. Assume earnings subject to state and federal unemployment compensation taxes are $5,000 at the federal rate of 0.8% and state rate of 5.4%. Prepare the journal entry to record the payroll tax expense for the period. If an amount box does not require an entry, leave it blank. If required, round your answers to two decimal places.

Answer 1

Step-by-step explanation:

The journal entry is shown below:

Payroll tax expense A/c Dr $1,361.00

To Social security tax payable A/c $840.00

To Medicate tax payable A/c $211.00

To State Unemployment tax payable A/c $270.00 ($5,000 × 5.4%)

To Federal Unemployment tax payable A/c $40.00 ($5,000 × 0.8%)

(Being the payroll tax expense is recorded)