Which of the following is included in the entry to record the employer's payroll taxes?
A) a debit to State Unemployment Tax Payable
B) a credit to Payroll Tax Expense
C) a credit to FICA-OASDI Tax Payable
D) a credit to Salaries Payable

Question

Quizplus · Accepted Answer

The employer's payroll taxes include FICA taxes (Social Security and Medicare), which are recorded as a credit to FICA-OASDI Tax Payable. State unemployment taxes are recorded as a debit to State Unemployment Tax Payable, but this is not the only tax included in the entry. Payroll tax expense is also involved, but it is not recorded as a credit or debit directly in this entry. Salaries payable is not related to payroll taxes.

Which of the Following Is Included in the Entry to Record