Vulcra, Inc., has a semimonthly payroll of $67,160 on September 15, 20--. The total payroll is taxable under FICA Taxes-HI; $63,450 is taxable under FICA Taxes-OASDI; and $10,260 is taxable under FUTA and SUTA. The state contribution rate for the company is 4.1%. The amount withheld for federal income taxes is $9,949. The amount withheld for state income taxes is $1,424.

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 or enter "0". 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

Feedback

a. Debit Wages (Gross Pay); credit employee's taxes withheld and Cash (net pay). Debit payroll taxes (total applicable employer's payroll taxes); Credit respective employer's payroll tax liabilities. Remember: Debits must equal credits!

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 $62,440.00 and that the employees' contributions are to be 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.

If an amount box does not require an entry, leave it blank or enter "0". 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