Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Diablo's Mexican Restaurant incurred salaries expense of $68,000 for 2018. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal

image text in transcribed
Diablo's Mexican Restaurant incurred salaries expense of $68,000 for 2018. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $24,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health Insurance (cost to the company. $2,800), life insurance (cost to the company, $320), and retirement benefits (cost to the company, 6% of salaries expense). (Click the icon to view payroll tax rate information Read the requirements planations are not required, fost cont. Record debits first, then credits. Exclude explanations from Requirements redit 1. Joumalize Diablo's expenses for employee benefits and for payroll taxes Explanations are not required 2. What was Diablo's total expense for 2018 related to payroll? Print Done For all payroll calculations, use the following tax rates and round amounts to the nearest cont redit Employee: Employer OASDI: 6.2% on first $118,600 samed: Medicare: 1.45% up to $200,000, 2.35% on eamings above $200,000 OASDE: 6.2% on first $118,500 camned per employee: Medicare: 1.45% on all earnings; FUTA: 0.6% on first $7,000 earned per employee; SUTA: 54% on first $7,000 earned per employee xt question Print Do

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Hospitality Industry Managerial Accounting

Authors: Raymond S. Schmidgall

8th Edition

0866124977, 9780866124973

More Books

Students also viewed these Accounting questions