Question
(1) Please prepare journal entry to record salaries expense and employee taxes. Your company, Metro Express has five employees, each of whom earn $3,000 per
(1)
Please prepare journal entry to record salaries expense and employee taxes.
Your company, Metro Express has five employees, each of whom earn $3,000 per month. Today January 31, 2011 is not a pay day. Each employee wages are subject to FICA social security of 6.5% and FICA Medicare taxes of 1.45% on the first $70,000 earned. Each employee has to contribute to his or her medical insurance coverage of $110 premium.
(2)
Please prepare journal entry to record payroll taxes for January 31st for Metro Express.
Refer back to problem 1, you are the employer Metro Express. You also have payroll taxes to pay for your employees that include FICA taxes, FUTA taxes of 0.8% of the first $7,000 paid to each employee, SUTA taxes of 4.0% of the first $7,000 paid to each employee.
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