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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
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. Total Earnings $11,400 Barney's Bagels Payroll Register Total Taxable Earnings of All Employees Unemployment Compensation $10,500 Social Security $11,400 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. Page: DATE ACCOUNT TITLE DOC. POST. NO. REF. DEBIT CREDIT 20- 1 July 15 2 3 4 5 00000 1 2 3 4 5
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