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During the week ended June 15, Wiley Automotive's employees earned $2,650 of gross wages and had $363 of federal income tax withheld. All of their employees had already earned over $7,000 of gross wages for the year so none of their wages were subject to FUTA or SUTA tax. However, all of their wages were still subject to Social Security tax of 6.2% and Medicare tax of 1.45% The journal entry to record Payroll Tax Expense for the pay period would be:

During the week ended June 15, Wiley Automotive's employees earned $2,650 of gross wages and had $363 of federal income tax withheld. All of their employees had already earned over $7,000 of gross wages for the year so none of their wages were subject to FUTA or SUTA tax. However, all of their wages were still subject to Social Security tax of 6.2% and Medicare tax of 1.45% The journal entry to record Payroll Tax Expense for the pay period would be:

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter7: Employee Earnings And Deductions
Section: Chapter Questions
Problem 1PA
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32 During the week ended June 15, Wiley Automotive's employees earned $2,650 of gross wages and had $363 of federal income tax withheld. All of their employees had already earned over $7,000 of gross wages for the year so none of their wages were subject to FUTA or SUTA tax. However, all of their wages were still subject to Social Security tax of 6.2% and Medicare tax of 1.45%. The journal entry to record Payroll Tax Expense for the pay period would be: 2
Transcribed Image Text:32 During the week ended June 15, Wiley Automotive's employees earned $2,650 of gross wages and had $363 of federal income tax withheld. All of their employees had already earned over $7,000 of gross wages for the year so none of their wages were subject to FUTA or SUTA tax. However, all of their wages were still subject to Social Security tax of 6.2% and Medicare tax of 1.45%. The journal entry to record Payroll Tax Expense for the pay period would be: 2
O O O O Account Name Payroll Taxes Expense Social Security Tax Payable Medicare Tax Payable Account Name Payroll Taxes Expense Employee Income Tax Payable Social Security Tax Payable Medicare Tax Payable Account Name Payroll Taxes Expense Social Security Tax Payable Medicare Tax Payable Account Name Social Security Tax Payable Medicare Tax Payable Payroll Taxes Expense Debit 202.73 Debit 565.73 Debit 548.55 Debit 164.30 38.43 Credit 164.30 38.43 Credit 363 164.30 38.43 Credit 164.30 384.25 Credit 202.73
Transcribed Image Text:O O O O Account Name Payroll Taxes Expense Social Security Tax Payable Medicare Tax Payable Account Name Payroll Taxes Expense Employee Income Tax Payable Social Security Tax Payable Medicare Tax Payable Account Name Payroll Taxes Expense Social Security Tax Payable Medicare Tax Payable Account Name Social Security Tax Payable Medicare Tax Payable Payroll Taxes Expense Debit 202.73 Debit 565.73 Debit 548.55 Debit 164.30 38.43 Credit 164.30 38.43 Credit 363 164.30 38.43 Credit 164.30 384.25 Credit 202.73
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