Example 6-5
The journal entry to record the payroll from Figure 6.1, onpages 6-2 and 6-3, would be:
| Debit | Credit |
| Wages Expense | 24,762.70 | |
| FICA Taxes Payable—OASDI | | 1,535.29 |
| FICA Taxes Payable—HI | | 359.06 |
| FIT Payable | | 3,714.00 |
| SIT Payable | | 55.25 |
| Group Insurance Payments W/H | | 54.70 |
| Cash | | 19,044.40 |
Example 6-7
The journal entry to record the payroll tax entry from Figure6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of3.0%):
| Debit | Credit |
| Payroll Taxes | 2,785.81 | |
| FICA Taxes Payable—OASDI | | 1,535.29 |
| FICA Taxes Payable—HI | | 359.06 |
| FUTA Taxes Payable | | 148.58 |
| SUTA Taxes Payable | | 742.88 |
Carmen Santos is owner and sole employee of CS Corporation. Hepays himself a salary of $2,400 this week.
| Additional tax informationincludes: | |
| FICA tax—OASDI | 6.2% on first $132,900 |
| FICA tax—HI | 1.45% on total pay |
| Federal income tax | $532.00 per pay |
| State income tax | 22% of the federal income tax withholding |
| Federal unemployment tax | 0.6% on first $7,000 |
| State unemployment tax | 0.05% on first $14,000 |
| Additional payroll deductionsinclude: | |
| 401(k) plan | 3% per pay |
| Child support garnishment | $125 per pay |
| Health insurance premium | $110 per pay |
Record the payroll entry and payroll tax entry for the pay ofthe week ended June 7 (his year-to-date pay is $51,500).
If an amount box does not require an entry, leave itblank. Round your answers to the nearest cent.
| Account | Debit | Credit |
| Payment of wages | Wages Expense | | |
| FICA Taxes Payable-OASDI | | |
| FICA Taxes Payable-HI | | |
| Employees FIT Payable | | |
| Employees SIT Payable | | |
| Retirement Plan Contributions Payable | | |
| Garnishment Payable | | |
| Health Insurance Premiums Payable | | |
| SUTA Taxes Payable | | |
| | | |
| Payroll taxes | Payroll Taxes | | |
| FICA Taxes Payable-OASDI | | |
| FICA Taxes Payable-HI | | |
