Salary Expense and Payroll Tax Expense

Ergo Company has one employee who is paid a salary of $8,500 per month. Payroll information for the first month of the year is:

Federal and state income tax withheld	$1,275
FICA (social security and Medicare)	7.65%
Federal unemployment (FUTA and SUTA) tax rate (on the 1st $7,000 of wages)	6.2%
Insurance Premiums (paid by Employees)	$400
Insurance Premiums (paid by Employer)	$600

Part I: Prepare Ergos journal entry to record the first months salary expense and employee withholdings. Payroll tax expense will be recorded in part 2.

Date	Account Name	Debit	Credit

Part 2: Prepare Ergos journal entry to record employer payroll taxes for the first months payroll.

Date	Account Name	Debit	Credit

Part 3: Prepare Ergos journal entry to record fringe benefits for the first months payroll.

Date	Account Name	Debit	Credit