3. Tesla, Inc. pays employees at the end of each month. Payroll information is listed below for January, the first month of the fiscal year. Assume that none of the employees exceeds the Federal unemployment tax maximum salary of $7,000 in January. Salaries                                                                                 $985,000 Federal and state income taxes withheld                               184,000 Federal unemployment tax rate                                                0.80% State unemployment tax rate (after FUTA deduction)             3.00% Social Security (FICA) tax rate                                                7.65% Record employees salaries expense and payroll tax expense for the January pay period. Account Name                  Debit                Credit Employees Salaries exp.                                                     [no1]                                [no1]                                [no1]                Employer Payroll tax                                    [no1]                 [no1]                                [no1]                      Next

College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 1E
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3. Tesla, Inc. pays employees at the end of each month. Payroll information is listed below for January, the first month of the fiscal year. Assume that none of the employees exceeds the Federal unemployment tax maximum salary of $7,000 in January.

Salaries                                                                                 $985,000

Federal and state income taxes withheld                               184,000

Federal unemployment tax rate                                                0.80%

State unemployment tax rate (after FUTA deduction)             3.00%

Social Security (FICA) tax rate                                                7.65%

Record employees salaries expense and payroll tax expense for the January pay period.

Account Name                  Debit                Credit
Employees Salaries exp.    
                               
                [no1]               
                [no1]               
                [no1]               
Employer Payroll tax    
                               [no1]
                [no1]               
                [no1]               
 
 
 
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