Chapter 12, Problem 13EB

Marc & Associates employs Janet Evanovich at its law firm. Her gross income for June is $7,500. Payroll for the month of June follows: federal income tax of $650, state income tax of $60, local income tax of $30, FICA Social Security tax rate at 6.2%, FICA Medicare tax rate at 1.45%, health-care insurance premium of $300, donations to a charity of $50, and pension plan contribution of $200. The employee is responsible for covering 40% of his or her health insurance premium.

A. Record the journal entry to recognize employee payroll for the month of June; dated June 30, 2017.

B. Record remittance of the employee’s salary with cash on July 1.