You have been asked to prepare the entry to record the payroll on February 15, 20X1, for Hotel Properties, Inc. The gross wages are $8,000 for administrative salaries and $6,000 For sales salaries. The federal income tax rate is 28 percent, the state income tax rate is 4.6 percent, and the FICA rate is 7.65 percent for all employees. All wages are subject to these taxes. In addition to taxes withheld, the employer has withheld $128 for the employees' contribution to a health insurance plan. Required: 1. Prepare the necessary journal entry to record the payroll of Hotel Properties, Inc., on February 15, 20X1. 2. Prepare the journal entry that would be made on the date the payroll was actually paid. boniupa

You have been asked to prepare the entry to record the payroll on February 15, 20X1, for Hotel Properties, Inc. The gross wages are $8,000 for administrative salaries and $6,000 For sales salaries. The federal income tax rate is 28 percent, the state income tax rate is 4.6 percent, and the FICA rate is 7.65 percent for all employees. All wages are subject to these taxes. In addition to taxes withheld, the employer has withheld $128 for the employees' contribution to a health insurance plan. Required: 1. Prepare the necessary journal entry to record the payroll of Hotel Properties, Inc., on February 15, 20X1. 2. Prepare the journal entry that would be made on the date the payroll was actually paid. boniupa

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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Tan's gross pay for the week is $1,400. His year-to-date pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is 6% and that Tan's year-to-date pay has previously exceeded the $7,000 cap. What is the amount of state and federal unemployment tax that his employer must record as payroll tax expense and pay to the federal and state governments?
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