Assume the following payroll information for Jane Smith: Gross pay $10,000; deductions: income tax $2,500, FICA Social Security $620, FICA Medicare $145. What is included in the journal entry to record the employer amounts of the payroll? Assume gross salary maximums have not been reached.FICA Social Security taxes of $620FICA Medicare taxes payable of $290Employer portion of income tax $2,500None of the above.

The employer has to match the contribution made by the employee towards FICA taxes and hence the same has been evaluated below.The employer has to pay his portion of FICA Social Security tax and FICA Medicare tax the same as the portion paid by the employee. Hence we can observe that employer’s portion of FICA Social Security tax is equal to the employee’s portion of FICA Social Security tax which is equal to $620. Hence we can observe that employer’s portion of FICA Medicare tax is equal to the employee’s portion of FICA Medicare tax which is equal to $145. So we can correctly conclude that none of the options mentioned are incorrect. The correct option is (None of the above).

Answered: Assume the following payroll…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume the following payroll information for Jane Smith: Gross pay $10,000; deductions: income tax $2,500, FICA Social Security $620, FICA Medicare $145. What is included in the journal entry to record the employer amounts of the payroll? Assume gross salary maximums have not been reached.

FICA Social Security taxes of $620

FICA Medicare taxes payable of $290

Employer portion of income tax $2,500

None of the above.

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