Merger Company has 10 employees, each of whom earns $1,600 per month and has been employed since January 1. FICA Social Security taxes are 6.2% of the first $137,700 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay, FUTA taxes are 0.6% and SUTA taxes are 5.4 % of the first $7,000 paid to each employee.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Merger Company has 10 employees, each of whom earns $1,600 per month and has been employed since January 1, FICA Social
Security taxes are 6.2% of the first $137,700 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are
0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee.
Prepare the March 31 journal entry to record the March payroll taxes expense.
Note: Round your answers to 2 decimal places.
View transaction list
Journal entry worksheet
Record employer payroll tax expense.
Note: Enter debits before credits
Date
March 31
General Journal
Debit
Credit
Transcribed Image Text:Merger Company has 10 employees, each of whom earns $1,600 per month and has been employed since January 1, FICA Social Security taxes are 6.2% of the first $137,700 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. Prepare the March 31 journal entry to record the March payroll taxes expense. Note: Round your answers to 2 decimal places. View transaction list Journal entry worksheet Record employer payroll tax expense. Note: Enter debits before credits Date March 31 General Journal Debit Credit
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