Question Payroll Tax Entries According to a summary of the payroll ofBailik Co., $880,000 was subject to the 6.0% social security taxand the 1.5% Medicare tax. Also, $40,000 was subject to state andfederal unemployment taxes. a. Calculate the employer's payroll taxes,using the following rates: state unemployment, 5.4%; federalunemployment, 0.8%. b. Journalize the entry to record the accrualof payroll taxes. If an amount box does not require an entry, leaveit blank.
Question Payroll Tax Entries According to a summary of the payroll ofBailik Co., $880,000 was subject to the 6.0% social security taxand the 1.5% Medicare tax. Also, $40,000 was subject to state andfederal unemployment taxes. a. Calculate the employer's payroll taxes,using the following rates: state unemployment, 5.4%; federalunemployment, 0.8%. b. Journalize the entry to record the accrualof payroll taxes. If an amount box does not require an entry, leaveit blank.
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter10: Liabilities: Current, Installment Notes, And Contingencies
Section: Chapter Questions
Problem 10.4BE
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Payroll Tax Entries According to a summary of the payroll ofBailik Co., $880,000 was subject to the 6.0% social security taxand the 1.5% Medicare tax. Also, $40,000 was subject to state andfederal unemployment taxes.
a. Calculate the employer's payroll taxes,using the following rates: state unemployment, 5.4%; federalunemployment, 0.8%.
b. Journalize the entry to record the accrualof payroll taxes. If an amount box does not require an entry, leaveit blank.
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