PE 11-5B Journalize payroll tax

The payroll register of Russert Construction Co. indicates $18,000 of social security withheld and $4,500 of Medicare tax withheld on total salaries of $300,000 for the period. Assume earnings subject to state and federal unemployment compensation taxes are $13,000, at the federal rate of 0.8% and the state rate of 5.4%.

Provide the journal entry to record the payroll tax expense for the period.

Answer:
Payroll Tax Expense ................................. 23,306.00
          Social Security Tax Payable ......................... 18,000.00
          Medicare Tax Payable................................. 4,500.00
          State Unemployment Tax Payable....................... 702.00*
          Federal Unemployment Tax Payable..................... 104.00**  

*$13,000 × 5.4%
**$13,000 × 0.8%

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