Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What journal entry would be made to record the employers payroll taxes on the hypothetical payroll? Natalie is considering hiring two permanent employees who are

What journal entry would be made to record the employers payroll taxes on the hypothetical payroll?
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Natalie is considering hiring two permanent employees who are paid on an hourly basis plus time-and-a-half for all hours worked in excess of 40 hours per week. She is curious as to how this would affect her company's financial position. She has created some hypothetical payroll data which are presented below. Borke and Clarke are each married and they claim 1 and 2 withholding allowances, respectively. The 7.65\% FiCA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128400 and the Medicare tax rate of 1.45% on all sataries and wages. State income taxes are 4%. Federal and state unemployment taxes are 0.6% and 5.4% on the first $7,000 of wages paid to an employee during the year. Cookie Creations Payroll Register For the week ending Taxable Earnings Deductions What journal entry would be made to record the employer's payroll taxes on this hypothetical payroll? (Round answers to 2 decimal places, e.g. 15.25. Credit account titles are automatically indented when amount is eentered. Do not indent manually.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting An Integrated Statements Approach

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

2nd Edition

324312113, 978-0324312119

More Books

Students also viewed these Accounting questions

Question

What are the typical issues on which shareholders vote?

Answered: 1 week ago

Question

Tell what the word schizophrenia means.

Answered: 1 week ago