Chapter 11, Problem 2PB

A payroll summary for Today’s Teen owned by Nikki Davis, for the quarter ending September 30, 2019, appears below. The business made the following electronic deposits of payroll taxes:

1. a. August 15 for July taxes.
2. b. September 15 for August taxes.

INSTRUCTIONS

1. 1. Prepare the general journal entry on July 7, 2019, to record the employer’s payroll tax expense on the payroll ending that date. Use journal page 31. All earnings are subject to the following taxes:

1. 2. Make the entries in general journal form to record deposit of the employee income tax withheld and the social security and Medicare taxes (both employees’ withholding and employer’s matching portion) on August 15 for July taxes and on September 15 for the August taxes.

Analyze: How much would a SUTA rate of 1.5 percent reduce the tax for the payroll of July 7?