Metro Express has 5 sales employees, each of whom earns $4,000 per month and is paid on the last working day of the month. Each employee’s wages are subject to FICA social security taxes of 6.2% and Medicare taxes of 1.45% on all wages. Withholding for each employee also includes federal tax of 16% and monthly medical insurance premiums of $110 for each employee.Prepare the journal entry to record the January 31 payroll expense and salaries.The employer payroll taxes for Metro Express includes FICA taxes, federal unemployment taxes of 0.8% of the first $7,000 paid to each employee, and state unemployment taxes of 4.0% of the first $7,000 paid to each employee. Prepare the journal entry to record the employer’s payroll taxes on January 31 (Assume that none of the employees has reached the unemployment limit of $7,000).Journal entries will be journalized on the general journal for Problem 6. When complete, upload the general journal to this problem.

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Answered: Prepare the journal entry to record the…

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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Metro Express has 5 sales employees, each of whom earns $4,000 per month and is paid on the last working day of the month. Each employee’s wages are subject to FICA social security taxes of 6.2% and Medicare taxes of 1.45% on all wages. Withholding for each employee also includes federal tax of 16% and monthly medical insurance premiums of $110 for each employee.

Prepare the journal entry to record the January 31 payroll expense and salaries.
The employer payroll taxes for Metro Express includes FICA taxes, federal unemployment taxes of 0.8% of the first $7,000 paid to each employee, and state unemployment taxes of 4.0% of the first $7,000 paid to each employee. Prepare the journal entry to record the employer’s payroll taxes on January 31 (Assume that none of the employees has reached the unemployment limit of $7,000).
Journal entries will be journalized on the general journal for Problem 6. When complete, upload the general journal to this problem.

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