Calculation and Journal Entry for Employer Payroll Taxes Portions of the payroll register for La Panaderia for the week ended July 15 are shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.6%, both of which are levied on the first $7,000 of earnings. The Social Security tax rate is 6.2% on the first $128,400 of earnings. The Medicare rate is 1.45% on gross earnings. La Panaderia Payroll Register Total Taxable Earnings of All Employees Total Earnings Unemployment Compensation Social Security $11,300 $10,500 $11,300 1. Calculate the employer's payroll taxes expense.$ 2. Prepare the journal entry to record the employer's payroll taxes expense for the week ended July 15 of the current year. Page: DATE ACCOUNT TITLE DOC. NO. POST. REF. DEBIT CREDIT 1 20--July 15 1 2 2 3 3 4 4 5 5
Calculation and Journal Entry for Employer Payroll Taxes Portions of the payroll register for La Panaderia for the week ended July 15 are shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.6%, both of which are levied on the first $7,000 of earnings. The Social Security tax rate is 6.2% on the first $128,400 of earnings. The Medicare rate is 1.45% on gross earnings. La Panaderia Payroll Register Total Taxable Earnings of All Employees Total Earnings Unemployment Compensation Social Security $11,300 $10,500 $11,300 1. Calculate the employer's payroll taxes expense.$ 2. Prepare the journal entry to record the employer's payroll taxes expense for the week ended July 15 of the current year. Page: DATE ACCOUNT TITLE DOC. NO. POST. REF. DEBIT CREDIT 1 20--July 15 1 2 2 3 3 4 4 5 5
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculation and
Portions of the payroll register for La Panaderia for the week ended July 15 are shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.6%, both of which are levied on the first $7,000 of earnings. The Social Security tax rate is 6.2% on the first $128,400 of earnings. The Medicare rate is 1.45% on gross earnings.
| La Panaderia | ||
| Payroll Register | ||
| Total Taxable Earnings of All Employees | ||
| Total Earnings | Social Security | |
| $11,300 | $10,500 | $11,300 |
1. Calculate the employer's payroll taxes expense.
$
2. Prepare the journal entry to record the employer's payroll taxes expense for the week ended July 15 of the current year.
| DATE | ACCOUNT TITLE | DOC. NO. |
POST. REF. |
DEBIT | CREDIT | ||
|---|---|---|---|---|---|---|---|
| 1 | 20-- July 15 |
1 | |||||
| 2 | 2 | ||||||
| 3 | 3 | ||||||
| 4 | 4 | ||||||
| 5 | 5 |
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