EX 11-13 Payroll entries
Faber Company had gross wages of $110,000 during the week ended June 17. The amount of wages subject to social security tax was $110,000, while the amount of wages subject to federal and state unemployment taxes was $15,000. Tax rates are as follows:
Social security 6.0% Medicare 1.5% State unemployment 5.4% Federal unemployment 0.8%
The total amount withheld from employee wages for federal taxes was $22,000.
a. Journalize the entry to record the payroll for the week of June 17.
b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.
Answer:
a. Wages Expense............................................................ 110,000 Social Security Tax Payable .................................. 6,600 Medicare Tax Payable............................................. 1,650 Employees Federal Income Tax Payable.............. 22,000 Wages Payable........................................................ 79,750
b. Payroll Tax Expense .................................................... 9,180 Social Security Tax Payable .................................. 6,600 Medicare Tax Payable............................................. 1,650 State Unemployment Tax Payable......................... 810* Federal Unemployment Tax Payable..................... 120** *5.4% × $15,000 **0.8% × $15,000
Social security 6.0% Medicare 1.5% State unemployment 5.4% Federal unemployment 0.8%
The total amount withheld from employee wages for federal taxes was $22,000.
a. Journalize the entry to record the payroll for the week of June 17.
b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.
Answer:
a. Wages Expense............................................................ 110,000 Social Security Tax Payable .................................. 6,600 Medicare Tax Payable............................................. 1,650 Employees Federal Income Tax Payable.............. 22,000 Wages Payable........................................................ 79,750
b. Payroll Tax Expense .................................................... 9,180 Social Security Tax Payable .................................. 6,600 Medicare Tax Payable............................................. 1,650 State Unemployment Tax Payable......................... 810* Federal Unemployment Tax Payable..................... 120** *5.4% × $15,000 **0.8% × $15,000
