Sandhill Company has the following data for the weekly payroll ending January 31. Employee L. Helton R. Kenseth D. Tavaras M T Date 8 Jan. 31 8 9 8 8 12 Hours W 12 8 8 T F 8 10 8 8 8 9 S 3 Account Titles and Explanation 5 0 Hourly Rate Federal Income Tax Withholding Health Insurance $12 16 13 $34 37 58 Employees are paid 1½ times the regular hcrly rate for all hours worked in excess of 40 hours per week. FICA taxes are 7.65% (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages). Sandhill Company is subject to 5.4% state unemployment taxes and 0.6% federal unemployment taxes on the first $7,000 of gross earnings. Debit Prepare the journal entry to record Sandhill's payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 15.25.) $10 25 Credit 25
Sandhill Company has the following data for the weekly payroll ending January 31. Employee L. Helton R. Kenseth D. Tavaras M T Date 8 Jan. 31 8 9 8 8 12 Hours W 12 8 8 T F 8 10 8 8 8 9 S 3 Account Titles and Explanation 5 0 Hourly Rate Federal Income Tax Withholding Health Insurance $12 16 13 $34 37 58 Employees are paid 1½ times the regular hcrly rate for all hours worked in excess of 40 hours per week. FICA taxes are 7.65% (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages). Sandhill Company is subject to 5.4% state unemployment taxes and 0.6% federal unemployment taxes on the first $7,000 of gross earnings. Debit Prepare the journal entry to record Sandhill's payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 15.25.) $10 25 Credit 25
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 1SEB: CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL TAXES Portions of the payroll register for Kathy...
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