# Journalize payroll tax 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.

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

#### Solutions

Chapter
Section
Chapter 11, Problem 11.5APE
Textbook Problem

## Journalize payroll taxThe 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.

Expert Solution
To determine

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.

To Journalize: The payroll taxes expense for the period.

### Explanation of Solution

Working notes:

Calculate the amount of Federal unemployment taxes payable as below:

Federal Unemployment taxes payable=$30,000×0.6%=$180 (1)

Calculate the amount of State unemployment taxes payable as below:

State Unemployment taxes payable=$30,000×5.4%=$1,620 (2)

Calculate the amount of payroll tax expense as below:

Payroll tax expense=(Social security Taxes Payable )+ (Medicare Taxes Payable) +(Federal Unemployment Taxes Payable) + (State Unemployment

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