On January 8, the end of the first weekly pay period of the
year, Regis Company's payroll register showed that its employees
earned $23,760 of office salaries and $70,840 of sales salaries.
Withholdings from the employees' salaries include FICA Social
Security taxes at the rate of 6.20%, FICA Medicare taxes at the
rate of 1.45%, $13,260 of federal income taxes, $1,320 of medical
insurance deductions, and $820 of union dues. No employee earned
more than $7,000 in this first period.
Required:
1.1 Calculate below the amounts for each of these
four taxes of Regis Company. Regis’s merit rating reduces its state
unemployment tax rate to 2% of the first $7,000 paid each employee.
The federal unemployment tax rate is 0.60%. (Round your
answers to 2 decimal places.)
Regis Company’s: | |||
Tax | January 8 earnings subject to tax | Tax Rate | Tax Amount |
FICA-Social Security | |||
FICA-Medicare | |||
FUTA | |||
SUTA |
1.2 Prepare the journal entry to record Regis Company's January 8 (employee) payroll expenses and liabilities. (Round your answers to 2 decimal places.)
Journal entry worksheet
Record the employee payroll expenses and liabilities for the first weekly pay period of the year.
Note: Enter debits before credits.
2. Prepare the journal entry to record Regis’s (employer) payroll taxes resulting from the January 8 payroll. Regis’s merit rating reduces its state unemployment tax rate to 2% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.60%. (Round your answers to 2 decimal places.) Journal entry worksheet Record the employer’s payroll expenses and liabilities for the first weekly pay period of the year. Note: Enter debits before credits.
|
Regis Company’s: | |||
Tax | January 8 earnings subject to tax | Tax Rate | Tax Amount |
FICA-Social Security | $94,600 | 6.20% | $5,865.20 |
FICA-Medicare | $94,600 | 1.45% | $1,371.70 |
FUTA | $94,600 | 0.60% | $567.60 |
SUTA | $94,600 | 2.00% | $1,892.00 |
Date | General Journal | Debit | Credit |
8-Jan | Office salaries expense | 23,760.00 | |
Sales salaries expense | 70,840.00 | ||
FICA—Social sec. taxes payable | 5,865.20 | ||
FICA—Medicare taxes payable | 1,371.70 | ||
Employee fed. inc. taxes payable | 13,260.00 | ||
Employee medical insurance payable | 1,320.00 | ||
Employee union dues payable | 820 | ||
Salaries payable | 71,963.10 | ||
Date | General Journal | Debit | Credit |
8-Jan | Payroll taxes expense | 9,696.50 | |
FICA—Social sec. taxes payable | 5,865.20 | ||
FICA—Medicare taxes payable | 1,371.70 | ||
State unemployment taxes payable | 1,892.00 | ||
Federal unemployment taxes payable | $567.60 | ||
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