Chapter 9, Problem 1SEB

CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL TAXES Portions of the payroll register for Kathy s Cupcakes for the week ended June 21 are shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.6%, both on the first $7,000 of earnings. The Social Security tax rate is 6.2% on the first $118,500 of earnings. The Medicare rate is 1.45% on gross earnings.

Calculate the employer’s payroll taxes expense and prepare the journal entry to record the employer’s payroll taxes expense for the week ended June 21 of the current year.