On January 8, the end of the first weekly pay period of the
year, Regis Company's payroll register showed that its employees
earned $26,760 of office salaries and $60,840 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%, $13,060 of federal income taxes, $1,370 of medical
insurance deductions, and $800 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 3% of the first $7,000 paid each employee.
The federal unemployment tax rate is 0.60%. (Round your
answers to 2 decimal places.)
2.1 Prepare the journal entry to record Regis Company's January 8 (employee) payroll expenses and liabilities.
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