Question

Takei Company's payroll for the week ending January 15 amounted to $367,000 for salaries and wages....

Takei Company's payroll for the week ending January 15 amounted to $367,000 for salaries and wages. None of the employees has reached the earnings limits specified for federal or state employer payroll taxes. The following deductions were withheld from employees' salaries and wages:

Federal Income Tax $75,000
State Income Tax 13,500
FICA Taxes 28,075
Union Dues 4,100
United Fund Contributions 2,700

Federal unemployment tax (FUTA) rate is 6.2% less a credit equal to the rate paid for state unemployment taxes. The state unemployment tax (SUTA) rate is 5.4%.

Instructions: Prepare the journal entry to record the weekly payroll ending January 15 and also the employer's payroll tax expense on the payroll.

Business   Accounting   
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Answer #1
Salaries and Wages Expense 367000
         FICA Taxes Payable 75000
         Federal Income Taxes Payable 13500
         State Income Taxes Payable 28075
         Union Dues Payable 4100
         United Fund Contributions payable 2700
        Salaries and Wages Payable 243625
Payroll tax expense 97754
         FICA Taxes Payable 75000
         Federal unemployment tax payable 2936 =367000*0.8%
         State unemployment tax payable 19818 =367000*5.4%
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