Homework

Part $1$ of $3$

Points: $0$ of $1$

Felipe's Mexican Restaurant incurred salaries expense of $$58,000$ for $2024.$ The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $$23,000$ is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance $($cost to the company, $$2,200),$ life insurance $($cost to the company, $$400),$ and retirement benefits $($cost to the company, $7\%$ of salaries expense$).$

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

Read the requirements.

$q,$

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.$)$

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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.

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?