Felipe's Mexican Restaurant incurred salaries expense of $$60,000$ for $2024.$ The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the

total salaries, $$20,000$ is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance $($cost to the company, $$2,700),$ life insurance $($cost to the company,

$$300),$ and retirement benefits $($cost to the company, $6\%$ of salaries expense$).$

$($Click the icon to view payroll tax rate information.$)$

Read the requirements.

Requirement $1.$ Journalize Felipe's expenses for employee benefits and for payroll taxes. Explanations are not required.

Begin with the entry to accrue Felipe's employer payroll taxes. $($Round all amounts to the nearest cent. Record debits first, then credits. Exclude explanations from journal entries.$)$

Requirements

Journalize Felipe's expenses for employee benefits and for payroll taxes.

Explanations are not required.

What was Felipe's total expense for $2024$ related to payroll?

More info

For all payroll calculations, use the following tax rates and round amounts to the

nearest cent:

Employee: OASDI: $6\mathrm{.}2\%$ on first $$132,900$ earned; Medicare: $1\mathrm{.}45\%$ up to

$$200,000,2\mathrm{.}35\%$ on earnings above $$200,000.$

Employer: OASDI: $6\mathrm{.}2\%$ on first $$132,900$ earned per employee; Medicare:

$1\mathrm{.}45\%$; FUTA: $0\mathrm{.}6\%$ on first $$7,000$ earned per employee; SUTA:

$5\mathrm{.}4\%$ on first $$7,000$ earned per employee.