Chapter 11, Problem 11.19E

Recording employer payroll taxes and employee benefits

Diego's Mexican Restaurant incurred salaries expense of $70,000 for 2016. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $13,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,700), life insurance (cost to the company, $380), and retirement benefits (cost to the company, 10% of salaries expense). Journalize Diego's expenses for employee benefits and for payroll taxes. Explanations are not required.