For all payroll calculations, use the following tax rates and round amounts to the nearest cent. Employee: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; ŞUTA: 5.4% on first $7,000 earned. E-F:11-19 Recording employer payroll taxes and employee benefits (Learning Objective 2) Ricardo's Mexican Restaurant incurred salaries expense of $62,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $22,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $3,000), life insurance (cost to the company, $330), and retirement benefits (cost to the company, 10% of salaries expense). Requirements 1. Journalize Ricardo's expenses for employee benefits and for payroll 2. What was Ricardo's total expense for 2024 related to 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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Question
For all payroll calculations, use the following tax rates and round amounts to
the nearest cent.
Employee: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to
$200,000, 2.35% on earnings above $200,000.
Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA: 0.6%
on first $7,000 earned; ŞUTA: 5.4% on first $7,000 earned.
E-F:11-19 Recording employer payroll taxes and employee benefits
(Learning Objective 2)
Ricardo's Mexican Restaurant incurred salaries expense of $62,000 for
2024. The payroll expense includes employer FICA tax, in addition to
state unemployment tax and federal unemployment tax. Of the total
salaries, $22,000 is subject to unemployment tax. Also, the company
provides the following benefits for employees: health insurance (cost to
the company, $3,000), life insurance (cost to the company, $330), and
retirement benefits (cost to the company, 10% of salaries expense).
Requirements
1. Journalize Ricardo's expenses for employee benefits and for payroll
2. What was Ricardo's total expense for 2024 related to payroll?
Transcribed Image Text:For all payroll calculations, use the following tax rates and round amounts to the nearest cent. Employee: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; ŞUTA: 5.4% on first $7,000 earned. E-F:11-19 Recording employer payroll taxes and employee benefits (Learning Objective 2) Ricardo's Mexican Restaurant incurred salaries expense of $62,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $22,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $3,000), life insurance (cost to the company, $330), and retirement benefits (cost to the company, 10% of salaries expense). Requirements 1. Journalize Ricardo's expenses for employee benefits and for payroll 2. What was Ricardo's total expense for 2024 related to payroll?
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