Win-Win company’s first weekly pay period of the year ends on January 8. On that date, the column totals in its payroll register show that sales employees earned $30,000 and office employees earned $20,000 in salaries. The employees are to have withheld from their salaries FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $9,000 of federal income taxes, $2,000 of medical insurance deductions, and $1,000 of pension contributions. No employee earned more than $7,000 in the first pay period. Required: Part 1a. Compute FICA--Social Security taxes payable and FICA--Medicare taxes payable. Part 1b. Prepare the journal entry to record Win-Win's January 8 (employee) payroll expenses and liabilities. (Round amounts to cents.) Part 2. Prepare the journal entry to record Win-Win's (employer) payroll taxes resulting from the January 8 payroll.
Win-Win company’s first weekly pay period of the year ends on January 8. On that date, the column totals in its payroll register show that sales employees earned $30,000 and office employees earned $20,000 in salaries.
The employees are to have withheld from their salaries FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $9,000 of federal income taxes, $2,000 of medical insurance deductions, and $1,000 of pension contributions.
No employee earned more than $7,000 in the first pay period.
Required:
Part 1a. Compute FICA--Social Security taxes payable and FICA--Medicare taxes
payable.
Part 1b. Prepare the
expenses and liabilities. (Round amounts to cents.)
Part 2. Prepare the journal entry to record Win-Win's (employer) payroll taxes resulting
from the January 8 payroll.
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