Leroy, an employee of Double Time, Inc, has gross salary for March of $4,000
The entire amount is under the OASDI limit of $117,000 and thus subject to FICA. He is also subject to federal income tax at a rate of 18%. Provide the journal entry to record salaries expense and payroll withholdings. (Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.)
What will be an ideal response
Salaries Expense 4,000
Employee Income Taxes Payable ($4,000 x 18%) 720
FICA—OASDI Taxes Payable ($4,000 x 6.20%) 248
FICA—Medicare Taxes Payable ($4,000 x 1.45%) 58
Salaries Payable 2,974
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