Felipe's Mexican Restaurant incurred salaries expense of $59,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries,$16,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,400), life insurance (cost to the company, $400), and retirementbenefits (cost to the company, 5% of salaries expense).A (Click the icon to view payroll tax rate information.)More infoRequirementsFor all payroll calculations, use the following tax rates and round amounts to thenearest cent:1. Journalize Felipe's expenses for employee benefits and for payroll taxes.Explanations are not required.Employee:OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to$200,000, 2.35% on earnings above $200,000.2. What was Felipe's total expense for 2024 related to payroll?Employer:OASDI: 6.2% on first $132,900 earned per employee; Medicare:1.45%; FUTA: 0.6% on first $7,000 earned per employee; SUTA:5.4% on first $7,000 earned per employee.PrintDonePrintDone

FICA Medicare taxes payable = $59000×1.45% =$855.50 =$856 rounded to nearest cent.

Answered: pense of $59,000 for 2024. The company…

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pense of $59,000 for 2024. The company provides the followim anse)

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter9: Payroll Accounting: Employer Taxes And Reports

Section: Chapter Questions

Problem 1CP

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

Felipe's Mexican Restaurant incurred salaries expense of $59,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries,
$16,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,400), life insurance (cost to the company, $400), and retirement
benefits (cost to the company, 5% of salaries expense).
A (Click the icon to view payroll tax rate information.)
More info
Requirements
For all payroll calculations, use the following tax rates and round amounts to the
nearest cent:
1. Journalize Felipe's expenses for employee benefits and for payroll taxes.
Explanations are not required.
Employee:
OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to
$200,000, 2.35% on earnings above $200,000.
2. What was Felipe's total expense for 2024 related to payroll?
Employer:
OASDI: 6.2% on first $132,900 earned per employee; Medicare:
1.45%; FUTA: 0.6% on first $7,000 earned per employee; SUTA:
5.4% on first $7,000 earned per employee.
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