Chapter 9, Problem 7SPB

CALCULATING PAYROLL TAXES EXPENSE AND PREPARING JOURNAL ENTRY Selected information from the payroll register of Wray’s Drug Store for the week ended July 14,20--, is 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. Social Security tax on the employer is 6.2% on the first $118,500 of earnings, and Medicare tax is 1.45% on gross earnings.

REQUIRED

1. 1. Calculate the total employer payroll taxes for these employees.
2. 2. Prepare the journal entry to record the employer payroll taxes as of July 14,20--.