Question Payroll Tax Entries According to a summary of the payroll ofBailik Co., $880,000 was subject to the 6.0% social security taxand the 1.5% Medicare tax. Also, $40,000 was subject to state andfederal unemployment taxes. a. Calculate the employer's payroll taxes,using the following rates: state unemployment, 5.4%; federalunemployment, 0.8%. b. Journalize the entry to record the accrualof payroll taxes. If an amount box does not require an entry, leaveit blank.

Q: Journalize Payroll Tax The payroll register of Wang Engineering Co. indicates $966 of social…

A: State unemployment tax payable = 5000×5.4% =$270

Q: Payroll tax entries   Instructions Chart of Accounts First Question Journal       Instructions…

A: Given information is: Taxable Income = $770,000 Social security tax rate = 6% Medicare tax = 1.5%…

Q: The totals from the first payroll of the year are shown below.​ Total Earnings FICA OASDI FICA…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.