Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The employees of Pelter Company earn wages of $12,000 for the two weeks ending April 14th FIT taxes of $260 were withheld. The entire amount

The employees of Pelter Company earn wages of $12,000 for the two weeks ending April 14th FIT taxes of $260 were withheld. The entire amount of wages is subject to the FICA taxes, but only $9,800 is taxable under the federal and state unemployment compensation laws. The state contribution rate of the employer is 2.9% All employees are subject to state unemployment contributions of .5% on the April 14th taxable wages of $9800.00 and the employees contributions are to be deducted by the employer. Journalize the payment of the wages, and record the payroll taxes, assuming that the contributions of the employer and the employees are recorded in one account, SUTA Taxes payable.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia Libby

6th edition

1259864235, 1259864230, 1260159547, 126015954X, 978-1259864230

More Books

Students also viewed these Accounting questions

Question

Relax your shoulders

Answered: 1 week ago

Question

Keep your head straight on your shoulders

Answered: 1 week ago