Earnings for several employees for the week ended April 7, 20--, are shown: 1 Taxable Earnings 2Employee NameCurrent EarningsUnemployment CompensationSocial Security3Boyd, Glenda L.$850.00$300.00$850.004Evans, Sheryl N.970.00225.00970.005Fox, Howard J.830.00830.00830.006Jacobs, Phyllis J.1,825.00 1,825.007Roh, William R.990.0025.00990.00 Assuming that FUTA tax is 0.6%, SUTA tax is 5.4%, Social Security tax is 6.2%, and Medicare tax is 1.45%.Required:1.Calculate the employer's payroll taxes expense.2.Prepare the journal entry as of April 7, 20--.

Answered: Earnings for several employees for the…

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter9: Payroll Accounting: Employer Taxes And Reports

Section: Chapter Questions

Problem 3SEB

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Earnings for several employees for the week ended April 7, 20--, are shown:

1			Taxable Earnings
2	Employee Name	Current Earnings	Unemployment Compensation	Social Security
3	Boyd, Glenda L.	$850.00	$300.00	$850.00
4	Evans, Sheryl N.	970.00	225.00	970.00
5	Fox, Howard J.	830.00	830.00	830.00
6	Jacobs, Phyllis J.	1,825.00		1,825.00
7	Roh, William R.	990.00	25.00	990.00

Assuming that FUTA tax is 0.6%, SUTA tax is 5.4%, Social Security tax is 6.2%, and Medicare tax is 1.45%.

Required:

1.	Calculate the employer's payroll taxes expense.
2.	Prepare the journal entry as of April 7, 20--.

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