Question

The payroll register of Wang Heritage Co indicates $2,058 of social security withheld and $514.50 of Medicare tax withheld on total salaries of $34,300 for the period. Earnings of $10,600 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. Payroll Tax Expense Social Security Tax Payable Medicare Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable

Answer 1

Date X, Month Y, payroll taxes expense

Dr FICA (OASDI) taxes expense 2,058

Dr FICA (Medicare) taxes expense 514.50

Dr FUTA taxes expense 84.80

Dr SUTA taxes expense 572.40

Cr Dr FICA (OASDI) taxes payable 2,058

Cr FICA (Medicare) taxes payable 514.50

Cr FUTA taxes payable 84.80

Cr SUTA taxes payable 572.40

Explanation:

The amount of employer's FICA taxes expense is the same as the FICA taxes withheld from employees' salaries. Since the question asked for the journal entry to record payroll taxes, wages expense is not included.