QuestionPayroll 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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Answered: Question Payroll Tax Entries…

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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