William Corp. pays its employees every two weeks. Employee wages earned over a two-week period is $250,000. All wages are subject to social security and Medicare taxes, while $50,000 of wages are subject to federal and state unemployment taxes. Tax rates are the following: • Social security tax 6.0% • Medicare tax 1.5% • State unemployment compensation tax 5.4% • Federal unemployment compensation tax 0.8% Additionally, the total amount withheld from wages for federal income taxes is $75,000 and the total amount withheld for state income taxes is $12,500. ________________________________________ When William Corp. records the journal entry to recognize payroll every two weeks, Payroll Tax Expense will be: Question 30 options: Debited for $75,000 Credited for $12,500 Debited for $12,500 Credited for $75,000 Neither debited nor credited
William Corp. pays its employees every two weeks. Employee wages earned over a two-week period is $250,000. All wages are subject to social security and Medicare taxes, while $50,000 of wages are subject to federal and state
• Social security tax 6.0%
• Medicare tax 1.5%
• State unemployment compensation tax 5.4%
• Federal unemployment compensation tax 0.8%
Additionally, the total amount withheld from wages for federal income taxes is $75,000 and the total amount withheld for state income taxes is $12,500.
________________________________________
When William Corp. records the
Question 30 options:
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Debited for $75,000 |
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Credited for $12,500 |
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Debited for $12,500 |
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Credited for $75,000 |
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Neither debited nor credited |
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