Question
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.
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 |
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