Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Total payroll of Walnut Co. for October, 2016 is $240,000, of which $40,000 is exempt from Social Secunty tax because it represented amounts pard in
Total payroll of Walnut Co. for October, 2016 is $240,000, of which $40,000 is exempt from Social Secunty tax because it represented amounts pard in excess of the maxamum tazable wage ( $118,500 individually) to certain employees and $220,000 is exempt from federal unemployment tax because it represented amounts paid in excess of the maxamum taxable wage ( $7,000 individually) to certan employees. Income tases witheld are $50,000 and the state unemployment tax is $1,000 Assume the current FICA tax is 7.65% on an employee's wages to $118,500 and 1.45% in excess of $118,500. The federal unemployment tax is 6% on an employee's wages to $7,000. For federal unemployment tax, Walnut is allowed a tax credit for the full amount of tax pad into the state unemployment tar: Instructions (a) Prepare the joumal entry for the salaries and wages paid ( 5 points). (b) Prepare the entry to record the employer payroll taxes ( 5 points)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started