Answer:
Payroll Tax Expense 7,370
Social Security Tax Payable 5,400
Medicare Tax Payable 1,350
State Unemployment Tax Payable* 540
Federal Unemployment Tax Payable** 80
* $10,000 × 5.4%
** $10,000 × 0.8%
PE 11-5B 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 0.8% and the state rate of 5.4%. Provide the journal entry to record the payroll tax expense for the period.
Answer:
Payroll Tax Expense 7,370
Social Security Tax Payable 5,400
Medicare Tax Payable 1,350
State Unemployment Tax Payable* 540
Federal Unemployment Tax Payable** 80
* $10,000 × 5.4%
** $10,000 × 0.8%
Answer:
Payroll Tax Expense 7,370
Social Security Tax Payable 5,400
Medicare Tax Payable 1,350
State Unemployment Tax Payable* 540
Federal Unemployment Tax Payable** 80
* $10,000 × 5.4%
** $10,000 × 0.8%