Answered: Taxable Earnings Cumulative Pay Current…

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

CALCULATING PAYROLL TAXES EXPENSE AND PREPARING JOURNAL
ENTRY Selected information from the payroll register of Ebeling's Dairy
for the week ended July 7, 20--, is shown below. The SUTA tax rate is
5.4%, and the FUTA tax rate is 0.6%, both on the first $7,000 of earnings.
Social Security tax on the employer is 6.2% on the first $128,400 of
earnings, and Medicare tax is 1.45% on gross earnings.

REQUIRED
1. Calculate the total employer payroll taxes for these employees.
2. Prepare the journal entry to record the employer payroll taxes as
of July 7, 20--

Taxable Earnings
Cumulative Pay Current
Before Current
Earnings
$ 6,650
6,370
33,460
6,930
127,050
35,470
38,675
Weckly Unemployment Social
Earnings Compensation Security
008 $
Employee Name
Click, Katelyn
Coombs, Michelle
Fauss, Erin
Lenihan, Marcus
McMahon, Drew
Newell, Marg
Stevens, Matt
720
1,200
900
4,440
1,110
1,260

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