Calculation and Journal Entry for Employer Payroll TaxesPortions of the payroll register for La Panaderia for the week ended July 15 are shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.6%, both of which are levied on the first $7,000 of earnings. The Social Security tax rate is 6.2% on the first $128,400 of earnings. The Medicare rate is 1.45% on gross earnings.La PanaderiaPayroll Register Total Taxable Earnings of All EmployeesTotal EarningsUnemployment CompensationSocial Security$11,300$10,500$11,3001. Calculate the employer's payroll taxes expense.$2. Prepare the journal entry to record the employer's payroll taxes expense for the week ended July 15 of the current year.Page: DATEACCOUNT TITLEDOC. NO.POST. REF.DEBITCREDIT 120--July 15 12 23 34 45 5

Taxation: Taxation refers to the imposition of compulsory financial obligations by the government on…

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College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter9: Payroll Accounting: Employer Taxes And Reports

Section: Chapter Questions

Problem 1SEA: CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL TAXES Portions of the payroll register for...

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Calculation and Journal Entry for Employer Payroll Taxes

Portions of the payroll register for La Panaderia for the week ended July 15 are shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.6%, both of which are levied on the first $7,000 of earnings. The Social Security tax rate is 6.2% on the first $128,400 of earnings. The Medicare rate is 1.45% on gross earnings.

La Panaderia
Payroll Register
	Total Taxable Earnings of All Employees
Total Earnings	Unemployment Compensation	Social Security
$11,300	$10,500	$11,300

1. Calculate the employer's payroll taxes expense.
$

2. Prepare the journal entry to record the employer's payroll taxes expense for the week ended July 15 of the current year.

Page:

	DATE
1	20-- July 15	1
2		2
3		3
4		4
5		5

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