Question

McLoyd Company completed the salaries and wages payroll for March. The payroll provided the following details:

Salaries and wages earned	$	510,000
Employee income taxes withheld		47,175
FICA taxes withheld		36,465
Unemployment taxes		3,545

Required:

1. 1. Considering both employee and employer payroll taxes, use the preceding information to calculate the total labor cost for the company for March.

2. 2, & 3. Prepare the journal entry to record the payroll for March, including employee deductions (but excluding employer payroll taxes) and record employer’s FICA taxes and unemployment taxes. Employees were paid in March but amounts withheld were not yet remitted.

Journal Entry )

• Record the payroll for March including employee deductions: Salaries and wages earned, $510,000; Employee income taxes withheld, $47,175; FICA taxes withheld, $36,465; Unemployment taxes, $3,545.
• Record the employer's FICA taxes and unemployment taxes: Salaries and wages earned, $510,000; Employee income taxes withheld, $47,175; FICA taxes withheld, $36,465; Unemployment taxes, $3,545.

Answer 1

1
	Salaries expense	510000
	FICA payable	36465
	Unemployment taxes payable	3545
	Total labor cost	550010
2
	General Journal	Debit	Credit
	Salaries and wages expense	510000
	Withheld income taxes payable		47175
	FICA payable		36465
	Cash		426360
3
	General Journal	Debit	Credit
	Payroll tax expense	40010
	FICA payable		36465
	Unemployment taxes payable		3545