Chapter 11, Problem 7E

To determine

Employer Payroll Taxes Expense:

An employee is liable to pay payroll taxes on the employee’s payroll like FICA Social Security and Medicare, FUTA, SUTA. The tax rate for FICA − social security is 6.2%, FICA − Medicare is 1.45%, FUTA is 0.6% and SUTA is 5.4%.

To determine:

Prepare journal entries to record the employer’s payroll taxes expense and its related liabilities on September 30.