On January 8, the end of the first weekly pay period of the year, Regis Company's payroll register showed that its employees earned $24,760 of
On January 8, the end of the first weekly pay period of the year, Regis Company's payroll register showed that its employees earned $24,760 of office salaries and $70,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.20%, FICA Medicare taxes at the rate of 1.45%, $13,360 of federal income taxes, $1,400 of medical insurance deductions, and $920 of union dues. No employee earned more than $7,000 in this first period.
On January 8, the end of the first weekly pay period of the year, Regis Company's payroll register showed that its employees earned $24,760 of office salaries and $70,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.20%, FICA Medicare taxes at the rate of 1.45%, $13,360 of federal income taxes, $1,400 of medical insurance deductions, and $920 of union dues. No employee earned more than $7,000 in this first period. Required: 1.1 Calculate below the amounts for each of these four taxes of Regis Company. Regis's merit rating reduces its state unemployment tax rate to 3% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.60%. (Round your answers to 2 decimal places.) Answer is complete and correct. Regis Company's: Tax Tax Rate Tax Amount FICA-Social Security 6.20% FICA-Medicare January 8 earnings subject to tax $ 95,600 95,600 95,600 95,600 1.45% 5,927.20 1,386.20 573.60 2,868.00 FUTA 0.60% SUTA 3.00% 1.2 Prepare the journal entry to record Regis Company's January 8 (employee) payroll expenses and liabilities. (Round your answers to 2 decimal places.) No Date Credit 1 Jan 08 Answer is complete but not entirely correct. General Journal Debit Office salaries expense 24,760.00 Sales salaries expense 70,840.00 FICASocial sec. taxes payable FICAMedicare taxes payable Employee fed. inc. taxes payable Employee medical insurance payable Employee union dues payable Salaries payable 5,927.20 1,386.20 13,360.00 1,400.00 920.00 72,726.60 2. Prepare the journal entry to record Regis's (employer) payroll taxes resulting from the January 8 payroll. Regis's merit rating reduces its state unemployment tax rate to 3% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.60%. (Round your answers to 2 decimal places.) No Date Credit 1 Jan 08 Answer is complete but not entirely correct. General Journal Debit Payroll taxes expense 11,711.00 FICASocial sec. taxes payable FICAMedicare taxes payable State unemployment taxes payable Federal unemployment taxes payable 5,927.20 1,386.20 2,868.00 573.60
