Total payroll was $434,000, af which $104,000 is exempt from Social Security tax because it...
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Total payroll was $434,000, af which $104,000 is exempt from Social Security tax because it represented amounts paid in excess of $118,500 to certain employees. The amount paid to employees in excess of $7,000 was $363,000. Income taxes in the amount of $72,400 were withheld, as was $9,500 in union dues. The state unemployment taxis 3.5%, but Pina Company s allowed a credit of 2.3% by the state for its unemployment experience. Also, as n that the curent FICA tax is 7.65% on an employee's wages to $118,500 and 1.45% n excess o $118,500. No ensployee for Pna makes more than Sis ooo. The federal employment tax rate is 0.8% after state credit. Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately. (Round answers to 0 decimal places e.g. 5,275. If no entry is required, select "No Entry for the account titles and enter O for the amounts Credit account titles are automatically indenterd when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit To record wages and salaries paid)
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