The journal entry to record the payroll from Figure 6.1, on pages 6-3 and 6-4, would be:

	Debit	Credit
Wages Expense	24,762.70
FICA Taxes PayableOASDI		1,535.29
FICA Taxes PayableHI		359.06
FIT Payable		3,714.00
SIT Payable		55.25
Group Insurance Payments W/H		54.70
Cash		19,044.40

Example 6-9

The journal entry to record the payroll tax entry from Figure 6.1 on page 6-3 would be (assume a SUTA tax rate of 3.0%):

	Debit	Credit
Payroll Taxes	2,785.81
FICA Taxes PayableOASDI		1,535.29
FICA Taxes PayableHI		359.06
FUTA Taxes Payable		148.58
SUTA Taxes Payable		742.88

Example 6-11

On April 15, 20--, the ledger accounts FICA Taxes PayableOASDI, FICA Taxes PayableHI, and Employees FIT Payable of Goosen Company appear as follows:

FICA TAXES PAYABLEOASDI
		4/15	697.07
		4/15	697.07
			1,394.14

FICA TAXES PAYABLEHI
		4/15	163.02
		4/15	163.02
			326.04

EMPLOYEES FIT PAYABLE
		4/15	1,601.19

The company must electronically transfer the FICA and the federal income taxes. The following journal entry records this transaction:

FICA Taxes PayableOASDI	1,394.14
FICA Taxes PayableHI	326.04
Employees FIT Payable	1,601.19
Cash		3,321.37

When posted, the debits of $1,394.14 and $326.04 to FICA Taxes PayableOASDI and FICA Taxes PayableHI remove the liabilities for the employer's share, as well as the employees' share, of the FICA taxes imposed. The debit to Employees FIT Payable removes the liability for the total amount of federal income taxes withheld from the employees' wages during the period. The credit to Cash reduces the assets of the company.

a. Cal Yanza, an employer, is subject to FICA taxes but exempt from FUTA and SUTA taxes. During the last quarter of the year, his employees earned monthly wages of $8,200, all of which is taxable. The amount of federal income taxes withheld each month is $1,070. Journalize the payment of wages, and record the payroll tax on November 29. Find out which account the entries go under.

Date	Account	Debit	Credit
Nov. 29
Nov. 29

b. Prior to posting the November 29 payroll transaction, FICA Taxes Payable-OASDI, FICA Taxes Payable-HI, and Employees FIT Payable had zero balances. Yanza must pay the FICA taxes and income taxes withheld on the November 29 payroll. Journalize the electronic transfer of the payroll taxes on December 16. Find out which accounts these belong to.

Date	Account	Debit	Credit
Dec. 16