Question

Harriet Pandel, an employer is subject to FICA taxes but exempt from FUTA and SUTA taxes....

Harriet Pandel, an employer is subject to FICA taxes but exempt from FUTA and SUTA taxes.
During the last quarter of the year, her employees earned mothly wages of $16,900.00, all
of which is taxable. The amount of federal income taxes withheld each month is $1,698.  
Journalize the payment of wages, and record the payroll tax on November 30.
GENERAL JOURNAL
      Date
     Account Titles and Explanation Debit Credit
Prior to posting the November 30 payroll transaction, FICA Taxes Payable - OASDI, FICA Taxes Payable - HI
and employees FIT payable had zero balances. Pandel must pay the FICA taxes and income taxes withheld
on the November 30 payroll. Jornalize the electronic transfer of the payroll taxes on December 17.
GENERAL JOURNAL
      Date
     Account Titles and Explanation Debit Credit

Homework Answers

Answer #1
30-Nov Wages expense 16900
       FICA taxes payable-OASDI 1047.80 =16900*6.2%
       FICA taxes payable-HI 245.05 =16900*1.45%
       Employee FIT payable 1698
       Cash 13909.15
30-Nov Payroll tax expense 1292.85
       FICA taxes payable-OASDI 1047.80
       FICA taxes payable-HI 245.05
17-Dec FICA taxes payable-OASDI 2095.6
FICA taxes payable-HI 490.1
Employee FIT payable 1698
       Cash 4283.7
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