Vulcra, Inc., has a semimonthly payroll of $66,640 on September 15, 20--. The total payroll is taxable under FICA Taxes-HI; $63,220 is taxable under FICA Taxes-OASDI; and $10,460 is taxable under FUTA and SUTA. The state contribution rate for the company is 4.1%. The amount withheld for federal income taxes is $9,928. The amount withheld for state income taxes is $1,339. (Can You Explain How You Got Each Answer Please)
The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be: Debit Credit 24,762.70 Wages Expense FICA Taxes Payable-OASDI 1,535.29 FICA Taxes Payable-HI 359.06 FIT Payable 3,714.00 SIT Payable 55.25 Group Insurance Payments W/H 54.70 Cash 19,044.40 Example 6-7 The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be assume a SUTA tax rate of 3.0%): Debit Credit 2,785.81 Payroll Taxes FICA Taxes Payable-OASDI 1,535.29 FICA Taxes Payable-HI 359.06 FUTA Taxes Payable 148.58 SUTA Taxes Payable 742.88 Vulcra, Inc., has a semimonthly payroll of $66,640 on September 15, 20--. The total payroll is taxable under FICA Taxes-HI; $63,220 is taxable under FICA Taxes-OASDI; and $10,460 is taxable under FUTA and SUTA. The state contribution rate for the company is 4.1%. The amount withheld for federal income taxes is $9.928. The amount withheld for state income taxes is $1,339. Part A: Payment of the Wages, and the Payroll Taxes a. Journalize the payment of the wages, and record the payroll taxes on September 15. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. Account Debit Credit Payment of wages Wages Expense FICA Taxes Payable-OASDI FICA Taxes Payable-HI Employees FIT Payable Employees SIT Payable Cash Payroll taxes Payroll Taxes FICA Taxes Payable-OASDI FICA Taxes Payable-HI FUTA Taxes Payable SUTA Taxes Payable Part B: Payment of Wages b. Assume that the employees of Vulcra, Inc., must also pay state contributions (disability insurance) of 1% on the taxable payroll of $62,060.00 and that the employees' contributions are to deducted by the employer. Journalize the September 15 payment of wages, assuming that the state contributions of the employees are kept in a separate account. For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. Date Account Debit Credit Sept. 15 Wages Expense FICA Taxes Payable-OASDI FICA Taxes Payable-HI Employees Disability Contributions Payable Employees FIT Payable Employees SIT Payable Cash Feedback Check My Work b. Restate journal entry for part a; include credit to employees withholding for Employee's Disability Contributions Payable. Note difference in Credit to Cash
