Chapter 12, Problem 14EB

In EB13, you prepared the journal entries for Janet Evanovich, an employee of Marc & Associates. You have now been given the following additional information: June is the first pay period for this employee. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to the employee. FICA Social Security and FICA Medicare match employee deductions. The employer is responsible for 60% of the health insurance premium. The employer matches 50% of employee pension plan contributions.

Using the information from EB13 and the additional information provided:

A. Record the employer payroll for the month of June, dated June 30, 2017.

B. Record the payment in cash of all employer liabilities only on July 1.