Employee FICA Taxes: Employee FICA taxes are withheld from salaries by employers to cover Social Security Taxes which is used to cover post retirement or disability expenses and Medicare taxes used to cover medical expenses. Employer Payroll Taxes An employer needs to pay Employer FICA tax which is 6.2% Social Security tax and 1.45% Medicare tax in addition to employee salary. Also, they need to pay State and Federal Unemployment Taxes. To prepare: the journal entries for the given transactions

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Chapter 11, Problem 6PSB

To determine

Employee FICA Taxes:

Employee FICA taxes are withheld from salaries by employers to cover Social Security Taxes which is used to cover post retirement or disability expenses and Medicare taxes used to cover medical expenses.

Employer Payroll Taxes An employer needs to pay Employer FICA tax which is 6.2% Social Security tax and 1.45% Medicare tax in addition to employee salary. Also, they need to pay State and Federal Unemployment Taxes.

To prepare:

the journal entries for the given transactions

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