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

$1.$ Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes.

$2.$ Prepare the journal entry to record the employer's payroll taxes as of September $14,20--.$ Round your answers to the nearest cent. If an amount box does not require an entry, leave it blank.

Selected information from the payroll register of Joanie's Boutique for the week ended September $14,20--,$ is as follows. Social Security tax is $6\mathrm{.}2\%$ on the first $$118,500$ of earnings for each employee. Medicare tax is $1\mathrm{.}45\%$ of gross earnings. FUTA tax is $0\mathrm{.}6\%$ and SUTA tax is $5\mathrm{.}4\%$ on the first $$7,000$ of earnings.

Taxable Earnings

Cumulative Pay

Before Current

Employee Name

Earnings

Jordahl, Stephanie Keesling, Emily Palmer, Stefan

Soltis, Robin Stout, Hannah

$$6,480$

$6,240$

$55,330$

$54,120$

$28,770$

Xia, Xu

$108,060$

Current Unemployment

Gross Pay

Compensation

$$1,200$

$1,080$

$2,360$

$2,300$

$2,050$

$11,520$

Social

Security