Calculation of Taxable Earnings and Employer Payroll Taxes and Preparation of Journal EntrySelected information from the payroll register of Joanie's Boutique for the week ended September 14, 20--, is as follows: Social Security tax is 6.2% on the first $128,400 of earnings for each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings. Taxable EarningsCumulative PayBefore CurrentCurrentUnemploymentSocialEmployee NameEarningsGross Pay CompensationSecurityJordahl, Stephanie$6,800$1,180Keesling, Emily6,0701,090Palmer, Stefan55,4802,370Soltis, Robin54,1802,230Stout, Hannah29,0302,020Xia, Xu127,3503,6401. Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes.Taxable EarningsCurrentUnemploymentSocialEmployee NameEarningsCompensationSecurityJordahl, Stephanie $$Keesling, EmilyPalmer, StefanSoltis, RobinStout, HannahXia, XuTotal2$%24 Social Security taxMedicare taxFUTA taxSUTA taxTotal employer payroll taxes2. Prepare the journal entry to record the employer's payroll taxes as of September 14, 20--.Page:DOC. POST.DATEACCOUNT TITLEDEBITCREDITNO.REF.20--1Sept. 1412334455

Payroll refers to the payment to be made by the employer to the employees against the services…

Answered: Calculation of Taxable Earnings and…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter9: Payroll Accounting: Employer Taxes And Reports

Section: Chapter Questions

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Calculation of Taxable Earnings and Employer Payroll Taxes and Preparation of Journal Entry

Selected information from the payroll register of Joanie's Boutique for the week ended September 14, 20--, is as follows: Social Security tax is 6.2% on the first $128,400 of earnings for each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings.

Taxable Earnings
Cumulative Pay
Before Current
Current
Unemployment
Social
Employee Name
Earnings
Gross Pay Compensation
Security
Jordahl, Stephanie
$6,800
$1,180
Keesling, Emily
6,070
1,090
Palmer, Stefan
55,480
2,370
Soltis, Robin
54,180
2,230
Stout, Hannah
29,030
2,020
Xia, Xu
127,350
3,640
1. Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes.
Taxable Earnings
Current
Unemployment
Social
Employee Name
Earnings
Compensation
Security
Jordahl, Stephanie $
$
Keesling, Emily
Palmer, Stefan
Soltis, Robin
Stout, Hannah
Xia, Xu
Total
2$
%24

Social Security tax
Medicare tax
FUTA tax
SUTA tax
Total employer payroll taxes
2. Prepare the journal entry to record the employer's payroll taxes as of September 14, 20--.
Page:
DOC. POST.
DATE
ACCOUNT TITLE
DEBIT
CREDIT
NO.
REF.
20--
1
Sept. 14
1
2
3
3
4
4
5
5

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