Recording Payroll Costs McLoyd Company completed the salary and wage payroll for March. The payroll provided the following details:
Salaries and wages earned…………………….. $ 400,000
Employee income taxes withheld………………… 37,000
FICA taxes withheld……………………………... 28,600
Unemployment taxes……………………………… 2,780
Required:
1. Considering both employee and employer payroll taxes, use the preceding information to calculate the total labor cost for the company.
2. Prepare the journal entry to record the payroll for March, including employee deductions (but excluding employer payroll taxes). Employees were paid in March but amounts withheld were not yet remitted.
3. Prepare the journal entry to record the employer’s FICA taxes and unemployment taxes.