Question

The total wage expense for

Edgar

Co. was

$162,000.

Of this​ total,

$34,000

was above the OASDI wage base limit and not subject to this tax. All earnings are subject to Medicare​ taxes, and

$63,000

was above the federal and state unemployment wage base limits and not subject to unemployment taxes. Please calculate and journalize the total payroll tax expense for

Edgar

Co. given the following rates and wage base​ limits:

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Calculate the total payroll tax expense for

Edgar

Co.

FICA - OASDI
FICA - Medicare
FUTA
SUTA
Total

Rates and wage base limits:

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More Info

a. FICA tax​ rate: OASDI,

6.2​%

with a wage base limit of

$127,200​;

​Medicare,

1.45​%

with no wage base limitb. State unemployment tax rate

5.4​%

with a wage base limit of​ $7,000c. Federal unemployment tax rate​ (after credit):

0.6​%

with a wage base limit of​ $7,000

Answer 1

1
FICA - OASDI	7936	=(162000-34000)*6.2%
FICA - Medicare	2349	=162000*1.45%
FUTA	594	=(162000-63000)*0.6%
SUTA	5346	=(162000-63000)*5.4%
Total	16225
2
Account Titles	Debit	Credit
Payroll tax expense	16225
FICA - OASDI payable		7936
FICA - Medicare payable		2349
FUTA payable		594
SUTA payable		5346
To record payroll tax expense for the period