Journalize Payroll Tax

The payroll register of Castilla Engineering Co. indicates $1,482 of social security withheld and $370.50 of Medicare tax withheld on total salaries of $24,700 for the period. Earnings of $7,700 are subject to state and federal unemployment compensation taxes at the federal rate of 0.6% and the state rate of 5.4%.

Provide the journal entry to record the payroll tax expense for the period. If an amount box does not require an entry, leave it blank. Round to two decimal places.

	Payroll Tax Expense
	Social Security Tax Payable
	Medicare Tax Payable
	State Unemployment Tax Payable
	Federal Unemployment Tax Payable

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Remember that there is typically a maximum amount of earnings subject to state and federal unemployment taxes.