Problem 11.1A (Static) Computing and recording employer's payroll tax expense. LO 11-2, 11-6 The payroll register of Exterior Cleaning Company showed total employee earnings of $5,000 for the payroll period ended July 14. Required: 1. Compute the employer's payroll taxes for the period. Use rates of 6.2 percent for the employer's share of the social security tax, 1.45 percent for Medicare tax, 0.6 percent for FUTA tax, and 5.4 percent for SUTA tax. All earnings are taxable. 2. Prepare a general journal entry to record the employer's payroll taxes for the period. Analyze: Which of the above taxes are paid by the employee and matched by the employer? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Analyze Compute the employer's payroll taxes for the period. Use rates of 6.2 percent for the employer's share of the social security tax, 1.45 percent for Medicare tax, 0.6 percent for FUTA tax, and 5.4 percent for SUTA tax. All earnings are taxable. (Round your answers to 2 decimal places.) < Prev 1 of 2 # Next >
Problem 11.1A (Static) Computing and recording employer's payroll tax expense. LO 11-2, 11-6 The payroll register of Exterior Cleaning Company showed total employee earnings of $5,000 for the payroll period ended July 14. Required: 1. Compute the employer's payroll taxes for the period. Use rates of 6.2 percent for the employer's share of the social security tax, 1.45 percent for Medicare tax, 0.6 percent for FUTA tax, and 5.4 percent for SUTA tax. All earnings are taxable. 2. Prepare a general journal entry to record the employer's payroll taxes for the period. Analyze: Which of the above taxes are paid by the employee and matched by the employer? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Analyze Compute the employer's payroll taxes for the period. Use rates of 6.2 percent for the employer's share of the social security tax, 1.45 percent for Medicare tax, 0.6 percent for FUTA tax, and 5.4 percent for SUTA tax. All earnings are taxable. (Round your answers to 2 decimal places.) < Prev 1 of 2 # Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:Problem 11.1A (Static) Computing and recording employer's payroll tax expense. LO 11-2,
11-6
The payroll register of Exterior Cleaning Company showed total employee earnings of $5,000 for the payroll period
ended July 14.
Required:
1. Compute the employer's payroll taxes for the period. Use rates of 6.2 percent for the employer's share of the
social security tax, 1.45 percent for Medicare tax, 0.6 percent for FUTA tax, and 5.4 percent for SUTA tax. All
earnings are taxable.
2. Prepare a general journal entry to record the employer's payroll taxes for the period.
Analyze:
Which of the above taxes are paid by the employee and matched by the employer?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Analyze
Compute the employer's payroll taxes for the period. Use rates of 6.2 percent for the employer's share of the social security
tax, 1.45 percent for Medicare tax, 0.6 percent for FUTA tax, and 5.4 percent for SUTA tax. All earnings are taxable. (Round
your answers to 2 decimal places.)
< Prev
1 of 2 #
Next >
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