Calculation and Journal Entry for Employer Payroll Taxes

1.Calculate the employer's payroll taxes expense. Round your answer to the nearest cent.

2.Prepare the journal entry as of March 12, 20--, assuming that FUTA tax is 0.6%, SUTA tax is 5.4%, Social Security tax is 6.2%, and Medicare tax is 1.45%. If required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank.

Earnings for several employees for the week ended March 12, 20--, are as follows:

Taxable Earnings

Employee NameCurrent

EarningsUnemployment

CompensationSocial

SecurityAus, Glenn E.$700$200$700Diaz, Charles K.350350350Knapp, Carol S.1,240-1,240Mueller, Deborah F.850135850Yeager, Jackie R.94035940

X

Employer's Payroll Taxes