Great Lakes Tutoring had the following payroll information on February 28:

Employee

Gross Pay

Cumulative Earnings Prior to This Payroll

R. Hill

$4,000

$4,000

Assume:

FICA tax rates are OASDI 6.2% on a limit of $106,800, and Medicare is 1.45%.

The state unemployment tax rate is 2% on the first $7,000.

The federal unemployment tax rate is 0.8% on the first $7,000.

Using the information above, the journal entry to record the payroll tax expense for Great Lakes Tutoring would include

Question options:

A. a debit to Payroll Tax Expense in the amount of $390.

B. a credit to FUTA Payable for $24.

C. a credit to SUTA Payable for $60.

D. All of the above