Katie Pereira and Ferro Schwartz Are the Only Two Employees

Multiple Choice

Katie Pereira and Ferro Schwartz are the only two employees of Free Star Company.In February 2016,Katie's gross pay was $6500 and Ferro's gross pay was $12,400.All earnings are subject to Payroll tax of 4.2% and Medicare tax of 1.45%.Which of the following would be included in the entry to record the Payroll tax expense for February?

A) a credit to Payroll tax payable for $793.80
B) a debit to Salary payable to employees for $793.80
C) a credit to Payroll tax expense for $793.80
D) a debit to Medicare for $793.80