Larry,an employee of Ramsay's,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%.Larry has a deduction of $320 for health insurance and $80 for United Way.Which of the following is included in the entry to record the liability of payroll withholding deductions?
A)debit to Salaries Payable
B)credit to United Way Payable
C)debit to FICA Taxes Payable
D)debit to Cash

Question

Quizplus · Accepted Answer

The entry to record the liability of payroll withholding deductions includes a credit to United Way Payable for the $80 deduction.

Larry,an Employee of Ramsay's,Inc