Tavella Company’s first weekly pay period of the year ends on January 8. On that date, Tavella’s sales employees earned $34,745, office employees earned $21,225, and delivery employees earned $1,030 in salaries. The employees are to have withheld from their salaries FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $8,625 of federal income taxes, $1,160 of medical insurance deductions, and $138 of union dues. No employee earned more than $7,000 in the first pay period. Required 1. Calculate FICA Social Security taxes payable and FICA Medicare taxes payable. Prepare the journal entry to record Tavella Company’s January 8 employee payroll expenses and liabilities. Round amounts to cents. 2. Prepare the journal entry to record Tavella’s employer payroll taxes resulting from the January 8 payroll. Tavella’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.
Tavella Company’s first weekly pay period of the year ends on January 8. On that date, Tavella’s sales
employees earned $34,745, office employees earned $21,225, and delivery employees earned $1,030 in
salaries. The employees are to have withheld from their salaries FICA Social Security taxes at the rate of
6.2%, FICA Medicare taxes at the rate of 1.45%, $8,625 of federal income taxes, $1,160 of medical insurance
deductions, and $138 of union dues. No employee earned more than $7,000 in the first pay period. Required
1. Calculate FICA Social Security taxes payable and FICA Medicare taxes payable. Prepare the
entry
amounts to cents.
2. Prepare the journal entry to record Tavella’s employer payroll taxes resulting from the January 8 payroll.
Tavella’s state
federal unemployment tax rate is 0.6%. Round amounts to cents.
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