The payroll register of Big House Cleaning Company showed total employee earnings of $3,000 for the payroll period ended July 14.

Required:

Compute the employers payroll taxes for the period. Use rates of 6.2 percent for the employers share of the social security tax, 1.45 percent for Medicare tax, 0.6 percent for FUTA tax, and 5.4 percent for SUTA tax. All earnings are taxable.

Prepare a general journal entry to record the employers payroll taxes for the period

Analyze: Which of the above taxes are paid by the employee and matched by the employer?