The following information is taken from the payroll records of ABC Company for the current payroll period: Salaries $ 540,000 Federal Income Tax Withheld 92,500 State Income Tax Withheld 21,200 Employee 401(k) Contributions 500 Insurance paid by Employee* 7,500 Salaries Subject to Unemployment Taxes 180,000 Tax Rates: Social Security** 6.20% Medicare 1.45% State Unemployment 5.40% Federal Unemployment 0.80% *Represents 25% of total insurance cost **All salaries subject to Social Security taxes Required: Please record, in journal entry form, the (1) employee payroll and (2) employer’s payroll tax and benefit expense.
The following information is taken from the payroll records of ABC Company for the current payroll period:
Salaries $ 540,000
Federal Income Tax Withheld 92,500
State Income Tax Withheld 21,200
Employee 401(k) Contributions 500
Insurance paid by Employee* 7,500
Salaries Subject to
Tax Rates:
Social Security** 6.20%
Medicare 1.45%
State Unemployment 5.40%
Federal Unemployment 0.80%
*Represents 25% of total insurance cost
**All salaries subject to Social Security taxes
Required:
Please record, in
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