Entries for payroll and payroll taxes OBJ. 2, 3 The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.:

Salaries: Deductions:

Sales salaries $ 625,000 Income tax withheld $232,260 Warehouse salaries 240,000 Social security tax withheld 71,100 Office salaries 320,000 Medicare tax withheld 17,775

$1,185,000 U.S. savings bonds 35,500 Group insurance 53,325

$409,960 Tax rates assumed:

Social security, 6%

Medicare, 1.5%

State unemployment (employer only), 5.4%

Federal unemployment (employer only), 0.8%

Instructions 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries:

a. December 30, to record the payroll.

b. December 30, to record the employer’s payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $30,000 is subject to unemployment compensation taxes.

2. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the following entries:

a. December 30, to record the payroll.

b. January 4, to record the employer’s payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $1,185,000 in salaries is subject to unemployment compensation taxes.