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Eclipse Company has the following payroll information for the week: $240,000 of Salaries and Wages Expense. None of the employees have reached the earnings limits for FICA, FUTA, or SUTA so all wages are subject to these taxes for employer payroll tax purposes. The following deductions were withheld from employees: Federal Income Tax: $36,300 State Income Tax: $8,200 FICA Taxes: $18,360 Union Dues: $2,800 United Funds: $1,700 The FUTA rate is 0.8% and the SUTA rate is 5.4% Prepare the journal entry to record the employer's payroll tax expense

Eclipse Company has the following payroll information for the week: $240,000 of Salaries and Wages Expense. None of the employees have reached the earnings limits for FICA, FUTA, or SUTA so all wages are subject to these taxes for employer payroll tax purposes. The following deductions were withheld from employees: Federal Income Tax: $36,300 State Income Tax: $8,200 FICA Taxes: $18,360 Union Dues: $2,800 United Funds: $1,700 The FUTA rate is 0.8% and the SUTA rate is 5.4% Prepare the journal entry to record the employer's payroll tax expense

FINANCIAL ACCOUNTING
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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Eclipse Company has the following payroll information for the week: $240,000 of Salaries and Wages Expense. None of the employees have reached the earnings limits for FICA, FUTA, or SUTA so all wages are subject to these taxes for employer payroll tax purposes. The following deductions were withheld from employees: Federal Income Tax: $36,300 State Income Tax: $8,200 FICA Taxes: $18,360 Union Dues: $2,800 United Funds: $1,700 The FUTA rate is 0.8% and the SUTA rate is 5.4% Prepare the journal entry to record the employer's payroll tax expense
Transcribed Image Text:Eclipse Company has the following payroll information for the week: $240,000 of Salaries and Wages Expense. None of the employees have reached the earnings limits for FICA, FUTA, or SUTA so all wages are subject to these taxes for employer payroll tax purposes. The following deductions were withheld from employees: Federal Income Tax: $36,300 State Income Tax: $8,200 FICA Taxes: $18,360 Union Dues: $2,800 United Funds: $1,700 The FUTA rate is 0.8% and the SUTA rate is 5.4% Prepare the journal entry to record the employer's payroll tax expense
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