On January 8, the end of the first weekly pay period of the year, Regis Company’s employees earned $22,760 of office salaries and $65,840 of sales salaries. Withholdings from the employees’ salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $12,860 of federal income taxes, $1,340 of medical insurance deductions, and $840 of union dues. No employee earned more than $7,000 in this first period. Required 1. Calculate FICA Social Security taxes payable and FICA Medicare taxes payable. Prepare the journal entry to record Regis Company’s January 8 employee payroll expenses and liabilities. Round amounts to cents. 2. Prepare the journal entry to record Regis’s employer payroll taxes resulting from the January 8 payroll. Regis’s state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. Round amounts to cents.
On January 8, the end of the first weekly pay period of the year, Regis Company’s employees earned
$22,760 of office salaries and $65,840 of sales salaries. Withholdings from the employees’ salaries
include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $12,860
of federal income taxes, $1,340 of medical insurance deductions, and $840 of union dues. No employee
earned more than $7,000 in this first period.
Required
1. Calculate FICA Social Security taxes payable and FICA Medicare taxes payable. Prepare the
to record Regis Company’s January 8 employee payroll expenses and liabilities. Round amounts to cents.
2. Prepare the journal entry to record Regis’s employer payroll taxes resulting from the January 8 payroll.
Regis’s state
unemployment tax rate is 0.6%. Round amounts to cents.
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