Use this information to answer the following question. The following totals for the month of September were taken from the payroll register of Meadors Company:

-The entry to record the accrual of employer's payroll taxes would include a debit to Payroll Taxes and Benefits Expense for
A)$2,496.
B)$1,100.
C)$1,596.
D)$496.

Question

Use this information to answer the following question. The following totals for the month of September were taken from the payroll register of Meadors Company:
 
-The entry to record the accrual of employer's payroll taxes would include a debit to Payroll Taxes and Benefits Expense for
A)$2,496. 
B)$1,100. 
C)$1,596. 
D)$496.

Quizplus · Accepted Answer

To record the accrual of employer's payroll taxes, we need to calculate the employer's portion of payroll taxes. From the given information, we can see that the total salaries and wages for the month are $39,900. To calculate the employer's portion of payroll taxes, we need to multiply this amount by the total tax rate of 4%.

Employer's portion of payroll taxes = Total salaries and wages * Total tax rate
= $39,900 * 4%
= $1,596

Therefore, the entry to record the accrual of employer's payroll taxes would include a debit to Payroll Taxes and Benefits Expense for $1,596. Hence, the correct answer is option C.

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