Calculation of Taxable Earnings and Employer Payroll Taxes and Preparation of Journal Entry.

Selected information from the payroll register of Joanie's Boutique for the week ended September 14, 20--, as is follows: Social Security tax is 6.2% on the first $128,400 of earnings for each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings.

 

Employee Name Jordahl, Stephanie Keesling, Emily Palmer, Stefan Soltis, Robin Stout, Hannah Xia, Xu Employee Name Jordahl, Stephanie $ Keesling, Emily Palmer, Stefan Soltis, Robin Stout, Hannah Xia, Xu Cumulative Pay Before Current Earnings Total $6,530 6,020 55,290 54,370 28,920 127,400 1. Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes. Taxable Earnings Current Earnings 1,160 1,080 2,440 2,250 2,010 3,580 12,520 Social Security tax Medicare tax FUTA tax SUTA tax Total employer payroll taxes Current Unemployment Social Gross Pay Compensation Security $1,160 1,080 2,440 2,250 2,010 3,580 Taxable Earnings Unemployment Compensation X Social Security $ 1,160 1,080 2,440 Y 2,250 2,010