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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?
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
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