Jason,an employee of Fitzgerald,Inc.,has gross salary for March of $4,000.The entire amount is under the OASDI limit of $118,500,and thus subject to FICA.His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA.Which of the following is a part of the journal entry to record the employer's payroll taxes?
A) credit to Payroll Tax Expense
B) debit to FICA Taxes Payable
C) credit to FICA-Medicare Taxes Payable
D) debit to Cash

Question

Quizplus · Accepted Answer

FICA-Medicare Taxes Payable is credited because the employer is responsible for paying a matching amount of FICA taxes, which includes both Social Security and Medicare taxes. Since the question specifies the recording of the employer's payroll taxes, crediting FICA-Medicare Taxes Payable reflects the employer's obligation to pay these taxes.

Jason,an Employee of Fitzgerald,Inc