Cambridge Sales, Inc has gross salaries and wages for March of $45,000
Provide the journal entry to record salaries and wages expense and payroll withholdings. (Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.) Salaries and wages to date are under the OASDI limit. Assume no federal or state income taxes are due.
What will be an ideal response
Salaries and Wages Expense 45,000.00
FICA—OASDI tax payable ($45,000 x 6.20%) 2,790.00
FICA—Medicare Tax Payable ($45,000 x 1.45%) 652.50
Salaries and Wages Payable 41,557.50
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