Mike's Door Service's payroll data for the second week of June included the following:
Employees' gross earnings $4,500
Taxable earnings for FICA:
OASDI 2,500
Medicare 4,500
Taxable earnings for state unemployment taxes: $2,000
Assume the following tax rates:
FICA-OASDI 6.2%
FICA-Medicare 1.45%
State unemployment 1.5%
Federal unemployment 0.06%
Required: Prepare the payroll tax expense entry.
What will be an ideal response?
Answer:
Payroll Tax Expense 262.25
FICA-OASDI 155.00
FICA-Medicare Payable 65.25
SUTA Tax Payable 30.00
FUTA Tax Payable 12.00
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