Calculation and Journal Entry for Employer Payroll Taxes

Portions of the payroll register for Barney's Bagels for the week ended July 15 are shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.6%, both of which are levied on the first $7,000 of earnings. The Social Security tax rate is 6.2% on the first $128,400 of earnings. The Medicare rate is 1.45% on gross earnings.

Barney's Bagels
Payroll Register
	Total Taxable Earnings of All Employees
Total Earnings	Unemployment Compensation	Social Security
$12,900	$10,500	$12,900

Question Content Area

1. Calculate the employer's payroll taxes expense. 2. Prepare the journal entry to record the employer's payroll taxes expense for the week ended July 15 of the current year.

ROW NUMBER	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT	ROW NUMBER
1	20-- July 15	CashFUTA Tax PayableMedicare Tax PayablePayroll Taxes ExpenseSUTA Tax Payable	blank	blank	- Select -	- Select -	1
2	blank	CashMedicare Tax ExpenseSocial Security Tax ExpenseSocial Security Tax PayableSUTA Tax Expense	blank	blank	- Select -	- Select -	2
3	blank	CashFUTA Tax ExpenseMedicare Tax ExpenseMedicare Tax PayablePayroll Taxes Expense	blank	blank	- Select -	- Select -	3
4	blank	CashFUTA Tax ExpenseFUTA Tax PayableSocial Security Tax ExpenseSUTA Tax Expense	blank	blank	- Select -	- Select -	4
5	blank	CashMedicare Tax ExpensePayroll Taxes ExpenseSUTA Tax ExpenseSUTA Tax Payable	blank	blank	- Select -	- Select -	5