Great Lakes Tutoring Had the Following Payroll Information on February

Multiple Choice

Great Lakes Tutoring had the following payroll information on February 28: $$\begin{array} { | c | c | c | } \hline \text { Employee } & \text { Gross Pay } & \begin{array} { c } \text { Cumulative Earnings } \\\text { Prior to this Payroll }\end{array} \\\hline \text { R Hill } & \$ 4,000 & \$ 4,000 \\\hline\end{array}$$ Assume:
FICA tax rates are: OASDI 6.2% on a limit of $106,800 and Medicare 1.45%
State Unemployment tax rate is 2% on the first $7,000
Federal Unemployment tax rate is 0.8% on the first $7,000
Using the information above,the journal entry to record the employee's tax expense would include:

A) a debit to Payroll Tax Expense in the amount of $4,000.
B) a debit to Wages and Salaries Expense in the amount of $4,000.
C) a credit to Cash in the amount of $4,000.
D) a credit to FUTA Payable for $24.