According to a summary of the payroll of Mountain Streaming Co., $120,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $45,000 was subject to state and federal unemployment taxes.

a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%. $

Feedback

Remember that there is typically a maximum amount of earnings subject to state and federal unemployment taxes.

Learning Objective 2.

b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.

	Payroll Tax Expense
	Social Security Tax Payable
	Medicare Tax Payable
	State Unemployment Tax Payable
	Federal Unemployment Tax Payable