The payroll register of Ruggerio Co. indicates $10,500 of social security withheld and $2,625 of Medicare tax withheld on total salaries of $175,000 for the period. Earnings of $30,000 are subject to state and federal unemployment compensation taxes at the federal rate of 0.6% and the state rate of 5.4%.Provide the journal entry to record the payroll tax expense for the period.

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Asked Dec 17, 2019
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The payroll register of Ruggerio Co. indicates $10,500 of social security withheld and $2,625 of Medicare tax withheld on total salaries of $175,000 for the period. Earnings of $30,000 are subject to state and federal unemployment compensation taxes at the federal rate of 0.6% and the state rate of 5.4%.
Provide the journal entry to record the payroll tax expense for the period.

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Employer payroll taxes: The taxes which the employer must pay to the employees with their salaries are called employer payroll taxes. Such taxes are not withheld from employees' gross earnings but instead they are paid by employer.

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Step 2

Journalize the payroll taxes for the...

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Debit Credit Post Date Accounts and Explanation |($) Ref ($) Payroll Tax Expense (3) 14,925 Social Security Taxes Payable 10,500 Medicare Taxes Payable 2,625 Federal Unemployment Taxes Payable (1) 180 State Unemployment Taxes Payable (2) 1,620 (To record employer's payroll taxes expense)

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