Karl, an employee of Smith Electric, 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%. Karl has a deduction of $320 for health insurance and $80 for United Way. 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
Employee Health Insurance Payable 320
United Way Payable 80
Salaries Payable ($4,000 - $720 - $248 - 58 - $320 - $80 ) 2,574