Question

The payroll register of Castilla Heritage Co indicates $2,706 of social security withheld and $676.50 of Medicare tax withheld on total salaries of $45,100 for the period. Earnings of $13,100 are subject to state and federal unemployment compensation taxes at the federal rate of 0.8% 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. Round to two decimal places.

Answer 1

Answer: Please refer to Explanation

Step-by-step explanation:

The following are the Journal Entries.

DR Payroll Tax Expense $4,194.70

CR Social Security Taxes Payable $2,706

CR Medicare Taxes Payable $676.50

CR State Unemployment Tax Payable $707.40

CR Federal Unemployment Tax Payable $104.80

(To record Payroll Tax Expense)

Workings.

State Unemployment Tax Payable

= 13,100 * 5.4%

= $707.40

Federal Unemployment Tax Payable

= 13,100 * 0.8%

= $104.80