Payroll Tax Entries

The payroll of Hoffman Company for October 2022 is as follows: Total payroll was $800,000, of which $300,000 represents amounts paid in excess of $137,500 to certain employees. Income taxes in the amount of $150,000 were withheld, as was $24,000 for employee dependent insurance and $5,000 for United Way pledges. Assume that the FICA tax is 7.65% on an employees wages to $137,500 and 1.45% in excess of $137,500. The amount paid to employees in excess of $7,000 was $680,000. State and Federal Unemployment Taxes are only paid on the first $7,000 paid to individual employees. The State Unemployment Tax rate is 3.6%, but Hoffman Company is allowed a credit of 1.4% by the state for its unemployment experience. The Federal Unemployment Tax rate is .8% after state credit.

Instructions:

Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately.