To the right of the journal entry template (below) is the payroll register for Justice League, LLC, for the weekly pay period ending January 3. Below the payroll register is relevant information for calculating employer taxes. Payday is January 3. Assume a seven day workweek which includes holidays. Justice League LLC uses a percentage of payroll when accruing wage expense. Use the following tax rates:: OASDI: 6.20% HI: 1.45% FUTA: .6% SUTA: 2.3% When calculating employer taxes, round each amount to the nearest cent using standard rounding rules (described and used in your book). Instructions Journalize the (1) December 31 wage expense adjusting entry, (2) December 31 payroll tax expense adjusting entry, (3) January 1 reversing entries, (4) January 3 payroll and (5) January 3 employer's payroll tax expense. You should have six journal entries. No more, no less. Each journal entry should be appropriately dated. Use your textbook's account titles, but if it's an expense, add the word "expense" to the account title, and if it's a liability, add the word "payable" to the account title. That's to ensure your journal entries are clear for grading purposes, and I can assess your understanding of account classificaiton. If your account titles don't indicate the account's classification, I can't fully grade your work, and will return your submission to you to update it. Date Accounts Debit Credit Justice League, LLC PAYROLL REGISTER For pay period ending January 3 Employee Name Total Earnings DEDUCTIONS Net Pay FICA 401k Contribution Health Insurance PremiumOASDI HI FIT Batman $ 1,850.00 $ 114.70 $ 26.83 $ 370.00 $ 74.00 $ 27.75 $ 1,236.73 Superman 1,850.00 114.70 26.83 370.00 74.00 27.75 1,236.73 The Flash 1,600.00 99.20 23.20 320.00 64.00 24.00 1,069.60 Aquaman 1,650.00 102.30 23.93 330.00 66.00 24.75 1,103.03 Wonder Woman 2,050.00 127.10 29.73 410.00 82.00 30.75 1,370.43 Green Lantern 1,575.00 97.65 22.84 315.00 63.00 23.63 1,052.89 Hawkgirl 1,325.00 82.15 19.21 265.00 53.00 19.88 885.76 Supergirl 1,100.00 68.20 15.95 220.00 44.00 16.50 735.35 Totals $ 13,000.00 $ 806.00 $ 188.50 $ 2,600.00 $ 520.00 $ 195.00 $ 8,690.50 OASDI taxable earnings 13,000.00 HI taxable earnings 13,000.00 SUTA taxable earnings 11,150.00 Don't overthink this. To calculate the tax to accrue, only use the wages you accrue or else you'd be accruing too much tax expense. FUTA taxable earnings 2,425.00 Remember - only this amount is taxed, not the entire amount of wages you're accruing. Tips: Employee witholdings and deductions are given in the table above. Use them. Do not accrue employer payroll taxes the same way you determined the amount of wages to accrue. You must calculate taxes based on the amount you accrued and the taxable earnings given above. Employer payroll taxes are calculated on taxable earnings for each tax; because of rounding differences, the taxes might not be the same. For employer taxes, do not copy the employee deductions in the table. You must calculate them. You may use excel formulas, but it's not required. Pennies are often immaterial in financial accounting. But in payroll that's usually not the case. Employees and taxing authorities expect wages and taxes to be calculated using a consistent method and accurately.