My text book is Hospitality Industry Financial Accounting (4th edition). I am in chapter 12 -- CURRENT LIABILITIES AND PAYROLL now. There is a question asks me to make the journal entry necessary to record the payroll taxes for Hotel Properties, Inc., on February 15, 20X1: 1. Federal unemployment tax rate (FUTA) is 6.2 percent. 2. State unemployment tax rate (SUTA) is 4.2 percent. (The fulll 4.2 percent state rate can be used as a credit against the federal rate.) 3. All employees' wages are subject to federal and state unemployment taxes. The scenario is "You have been asked to prepare the entry to record the payroll on February 15, 20X1, for Hotel Properties, Inc. The gross wages are $8,000 for administrative salaries and $6,000 for sales salaries. The federal income tax rate is 28 percent, the state income tax rate is 4.6 percent, and the FICA rate is 7.65 percent for all employees. All wages are subject to these taxes. In addition to taxes withheld, the employer has withheld $128 for the employees contribution to health insurance plan."
My text book is Hospitality Industry Financial Accounting (4th edition). I am in chapter 12 -- CURRENT LIABILITIES AND PAYROLL now.
There is a question asks me to make the
1. Federal
2. State unemployment tax rate (SUTA) is 4.2 percent. (The fulll 4.2 percent state rate can be used as a credit against the federal rate.)
3. All employees' wages are subject to federal and state unemployment taxes.
The scenario is "You have been asked to prepare the entry to record the payroll on February 15, 20X1, for Hotel Properties, Inc. The gross wages are $8,000 for administrative salaries and $6,000 for sales salaries. The federal income tax rate is 28 percent, the state income tax rate is 4.6 percent, and the FICA rate is 7.65 percent for all employees. All wages are subject to these taxes. In addition to taxes withheld, the employer has withheld $128 for the employees contribution to health insurance plan."
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