Entries for Payroll and Payroll Taxes

The following information about the payroll for the week ended December 30 was obtained from the records of Arnsparger Equipment Co.: Salaries: Deductions: Sales salaries $224,000 Income tax withheld $81,136 Warehouse salaries 123,000 Social security tax withheld 24,894 Office salaries 114,000 Medicare tax withheld 6,915 $461,000 U.S. savings bonds 10,142 Group insurance 8,298 $131,385 Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 4.2% Federal unemployment (employer only), 0.8% Required: If an amount box does not require an entry, leave it blank. 1a. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30 to record the payroll.

Salaries:

Deductions:

Sales salaries

$224,000

Income tax withheld

$81,136

Warehouse salaries

123,000

Social security tax withheld

24,894

Office salaries

114,000

Medicare tax withheld

6,915

$461,000

U.S. savings bonds

10,142

Group insurance

8,298

Tax rates assumed:
	Social security, 6%
	Medicare, 1.5%
	State unemployment (employer only), 4.2%
	Federal unemployment (employer only), 0.8% Required: If an amount box does not require an entry, leave it blank. 1a. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30 to record the payroll. 1b. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30 to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $23,000 is subject to unemployment compensation taxes. 2a. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the entry on December 30 to record the payroll. 2b. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the entry to record the employer's payroll taxes on the payroll to be paid on January 5. Since it is a new fiscal year, all $461,000 in salaries is subject to unemployment compensation taxes.

$131,385