Question

The payroll register of Seaside Architecture Company indicates $870 of social security and $224 of Medicare tax withheld on total salaries of $14,000 for the period. Assume earnings subject to state and federal unemployment compensation taxes are $5,300 at the federal rate of 0.8% and state rate of 5.4%.

Prepare the journal entry to record the payroll tax expense for the period. If an amount box does not require an entry, leave it blank. If required, round your answers to two decimal places.

  

Answer 1

Account Titles and explanaation	Debit (in $)	Credit (in $)
Payroll Tax Expense	$1,422.60
Social Security Taxes Payable		$870
Medicare Tax Payable		$224
State Unemployment Tax Payable             ($5,300 × 5.4%)		$286.20
Federal Unemployment Tax Payable                ($5,300 × 0.8%)		$42.40
(To record the Payroll Tax Expense)