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 6.2% on the first $118,500 of earnings for each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings.

				Taxable Earnings
Employee Name	Cumulative Pay Before Current Earnings	Current Gross Pay	Unemployment Compensation	Social Security
Jordahl, Stephanie		$6,560	$1,190
Keesling, Emily		6,000	1,090
Palmer, Stefan		55,440	2,370
Soltis, Robin		54,480	2,270
Stout, Hannah		29,090	2,010
Xia, Xu		108,410	11,110

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

Taxable unemployment earnings	1a
Taxable Social Security earnings	1b
Taxable Medicare earnings	1c

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.

ROW NUMBER	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT	ROW NUMBER
1	20-- Sept. 14	Payroll taxes expense	blank	blank			1
2	blank	Social Security tax payable	blank	blank			2
3	blank	Medicare tax payable	blank	blank			3
4	blank	FUTA tax payable	blank	blank			4
5	blank	SUTA tax payable	blank	blank			5
6	blank	blank	blank	blank	blank	blank	6