Example 6-5

The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be:

	Debit	Credit
Wages Expense	24,762.70
FICA Taxes PayableOASDI		1,535.29
FICA Taxes PayableHI		359.06
FIT Payable		3,714.00
SIT Payable		55.25
Group Insurance Payments W/H		54.70
Cash		19,044.40

Example 6-7

The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of 3.0%):

	Debit	Credit
Payroll Taxes	2,785.81
FICA Taxes PayableOASDI		1,535.29
FICA Taxes PayableHI		359.06
FUTA Taxes Payable		148.58
SUTA Taxes Payable		742.88

Vulcra, Inc., has a semimonthly payroll of $67,900 on September 15, 20--. The total payroll is taxable under FICA Taxes-HI; $63,460 is taxable under FICA Taxes-OASDI; and $10,110 is taxable under FUTA and SUTA. The state contribution rate for the company is 4.1%. The amount withheld for federal income taxes is $9,831. The amount withheld for state income taxes is $1,440.