Question
Answer questions #3 & #4 please. Question # 3: Journalize the entry to record the employers payroll taxes (assume a SUTA rate of 3.7%). Question
Answer questions #3 & #4 please.
Question # 3: Journalize the entry to record the employers payroll taxes (assume a SUTA rate of 3.7%).
Question # 4: Journalize the entry to deposit the FICA and FIT taxes.
The totals from the first payroll of the year are shown below.
Total Pay = $36,195.10
FICA/OASDI = $ 2,244.10
FICA/HI = $ 524.83
FIT W/H = $ 6,515.00
State Tax W/H = $ 361.95
Union Dues = $ 500.00
Net Pay = $26,049.22
Assume the following tax rates:
1. * FICA taxOASDI on employees: 6.2%.
2. FICA taxHI on employees: 1.45%.
3. FIT withheld from employees.
4. FICA taxOASDI on employers: 6.2%.
5. FICA taxHI on employers: 1.45%.
6. Net FUTA tax: 0.6%.
7. SUTA tax: 3.7%.
Note Correction to the Textbook - The 2% reduction on the Employees share of the OASDI expired on December 31, 2012. So, the correct rate to apply is 6.2% for both the employee and the employer.
Question # 3: Journalize the entry to record the employers payroll taxes (assume a SUTA rate of 3.7%).
Question # 4: Journalize the entry to deposit the FICA and FIT taxes.
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