The payroll of Grich Company for September 2022 is as follows: Total payroll was $960,000, of which $44,000 is exempt from Social Security tax because it represented amounts paid in excess of $147,000 to certain employees. The amount paid to employees in excess of $7,000 was $800,000. Income taxes in the amount of $180,000 were withheld, as was $18,000 in union dues. The state unemployment tax is 6%, but Grich Company is allowed a credit of 4% by the State for its unemployment experience. The federal unemployment tax is rate is 0.8% after the state credit. Also, assume that the current Social Security rate is 6.2% on an employee’s wages to $147,000 and the Medicare rate is 1.45%. Prepare the necessary journal entries assuming the wages and salaries paid and the employer payroll taxes are recorded separately...
The payroll of Grich Company for September 2022 is as follows:
Total payroll was $960,000, of which $44,000 is exempt from Social Security tax because it represented amounts paid in excess of $147,000 to certain employees. The amount paid to employees in excess of $7,000 was $800,000. Income taxes in the amount of $180,000 were withheld, as was $18,000 in union dues. The state
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