The payroll records of a company provided the following data for the weekly pay period ended December 7: The FICA social security tax rate is 6.2% on the first $118,500 of earnings each calendar year and the FICA Medicare tax rate is 1.45% on all earnings. The federal and state unemployment tax rates are 0.8% and 5.4%, respectively, on the first $7,000 paid to each employee. Prepare the journal entries to (a) accrue the payroll and (b) record payroll taxes expense.

Question

The payroll records of a company provided the following data for the weekly pay period ended December 7:  The FICA social security tax rate is 6.2% on the first $118,500 of earnings each calendar year and the FICA Medicare tax rate is 1.45% on all earnings. The federal and state unemployment tax rates are 0.8% and 5.4%, respectively, on the first $7,000 paid to each employee. Prepare the journal entries to (a) accrue the payroll and (b) record payroll taxes expense.

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The Answer of The payroll records of a company provided the following data for the weekly pay period ended December 7:  The FICA social security tax rate is 6.2% on the first $118,500 of earnings each calendar year and the FICA Medicare tax rate is 1.45% on all earnings. The federal and state unemployment tax rates are 0.8% and 5.4%, respectively, on the first $7,000 paid to each employee. Prepare the journal entries to (a) accrue the payroll and (b) record payroll taxes expense.

The Payroll Records of a Company Provided the Following Data