1 Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on 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, $18,000 is subject to unemployment compensation taxes.

2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the entry to record the employer's payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all $352,000 in salaries is subject to unemployment compensation taxes.

Entries for Payroll and Payroll Taxes

The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.:

Salaries: Deductions:

Sales salaries $171,000 Income tax withheld $61,952

Warehouse salaries 94,000 U.S. savings bonds 7,744

Office salaries 87,000 Group insurance 6,336

$352,000

Tax rates assumed:

Social security, 6%

Medicare, 1.5%

State unemployment (employer only), 5.4%

Federal unemployment (employer only), 0.8%

1.Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on 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, $18,000 is subject to unemployment compensation taxes.

2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the entry on December 30 to record the payroll.

3.Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the entry to record the employer's payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all $352,000 in salaries is subject to unemployment compensation taxes.