Payroll Tax Entries

According to a summary of the payroll of Mountain Streaming Co., $558,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $18,000 was subject to state and federal unemployment taxes.

Question Content Area

a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.2%; federal unemployment, 0.8%.

b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.

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