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College Accounting 2nd Edition by David Haddock, John Price,Michael Farina
Edition 2ISBN: 978-0073396958College Accounting 2nd Edition by David Haddock, John Price,Michael Farina
Edition 2ISBN: 978-0073396958 Exercise 26
Computing and recording employer's payroll tax expense.
The payroll register of Total Garden Care showed total employee earnings of $3,500 for the payroll period ended July 14, 2013.
INSTRUCTIONS
1. Compute the employer's payroll taxes for the period. Use rates of 6.2 percent for the employer's share of the social security tax, 1.45 percent for Medicare tax, 0.8 percent for FUTA tax, and 5.4 percent for SUTA tax. All earnings are taxable.
2. Prepare a general journal entry to record the employer's payroll taxes for the period. Use journal page 30.
Analyze: Which of the above taxes are paid by the employee and matched by the employer?
The payroll register of Total Garden Care showed total employee earnings of $3,500 for the payroll period ended July 14, 2013.
INSTRUCTIONS
1. Compute the employer's payroll taxes for the period. Use rates of 6.2 percent for the employer's share of the social security tax, 1.45 percent for Medicare tax, 0.8 percent for FUTA tax, and 5.4 percent for SUTA tax. All earnings are taxable.
2. Prepare a general journal entry to record the employer's payroll taxes for the period. Use journal page 30.
Analyze: Which of the above taxes are paid by the employee and matched by the employer?
Explanation
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2.
The general journal entry to record t...
College Accounting 2nd Edition by David Haddock, John Price,Michael Farina
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