Calculation and Journal Entry for Employer Payroll Taxes1.  Calculate the employer's payroll taxes expense. Round your answer to the nearest cent.2.   Prepare the journal entry to record the employer's payroll taxes expense for the week ended July 15 of the current year. Round your answers to the nearest cent, if required. If an amount box does not require an entry, leave it blank.Portions of the payroll register for Barney’s Bagels for the week ended July 15 are shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.6%, both of which are levied on the first $7,000 of earnings. The Social Security tax rate is 6.2% on the first $118,500 of earnings. The Medicare rate is 1.45% on gross earnings.Barney’s BagelsPayroll Register Total Taxable Earnings of All EmployeesTotal EarningsUnemployment CompensationSocial Security$12,200$10,500$12,200

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Asked Oct 23, 2019
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Calculation and Journal Entry for Employer Payroll Taxes

1.  Calculate the employer's payroll taxes expense. Round your answer to the nearest cent.

2.   Prepare the journal entry to record the employer's payroll taxes expense for the week ended July 15 of the current year. Round your answers to the nearest cent, if required. If an amount box does not require an entry, leave it blank.

Portions of the payroll register for Barney’s Bagels for the week ended July 15 are shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.6%, both of which are levied on the first $7,000 of earnings. The Social Security tax rate is 6.2% on the first $118,500 of earnings. The Medicare rate is 1.45% on gross earnings.

Barney’s Bagels
Payroll Register
  Total Taxable Earnings of All Employees
Total Earnings Unemployment Compensation Social Security
$12,200 $10,500 $12,200
 
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Expert Answer

Step 1
1. Compute employer's payroll tax expense as shown below
Amount (S)
$756.40
Particulars
Calculation
Social security tax
Medicare tax
FUTA tax
SUTA tax
Total employer payroll taxes
$12,200x6.2%
$12,200x1.45%
$10,500x0.6%
$10,500x5.4%
$176.90
$63.00
$567.00
S1,563.30
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1. Compute employer's payroll tax expense as shown below Amount (S) $756.40 Particulars Calculation Social security tax Medicare tax FUTA tax SUTA tax Total employer payroll taxes $12,200x6.2% $12,200x1.45% $10,500x0.6% $10,500x5.4% $176.90 $63.00 $567.00 S1,563.30

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