Sylvester's gross pay for the month of February is $3,900. His year-to-date pay is under the limit for OASDI. Assume that the rate for state unemployment tax is 5.5% and federal unemployment tax rate is 0.5%. Sylvester's year-to-date pay has not yet exceeded the $7,000 cap. Journalize the payment of the employer payroll taxes for Sylvester for the month of February. Assume a FICA - OASDI Tax of 6.2% and FICA - Medicare Tax of 1.45%. (Round all amounts to the nearest cent. Record debits first, then credits. Exclude explanation from journal entries.) \table[[Accounts and Explanation, Debit,Credit], [..], [] [] []]

Sylvester's gross pay for the month of February is $3,900. His year-to-date pay is under the limit for OASDI. Assume that the rate for state unemployment tax is 5.5% and federal unemployment tax rate is 0.5%. Sylvester's year-to-date pay has not yet exceeded the $7,000 cap. Journalize the payment of the employer payroll taxes for Sylvester for the month of February. Assume a FICA - OASDI Tax of 6.2% and FICA - Medicare Tax of 1.45%. (Round all amounts to the nearest cent. Record debits first, then credits. Exclude explanation from journal entries.) \table[[Accounts and Explanation, Debit,Credit], [..], [] [] []]

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

Problem 1CP

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Wallace Corporation summarizes the following information from its weekly payroll records during April. Prepare the two journal entries to record the payment of the payroll and the accrual of its payroll taxes for April. Assume an 8% FICA rate for both employees and the employer. Also assume a 5.4% state unemployment tax rate, a 0.6% federal unemployment tax rate, and that all wages are subject to all payroll taxes. Round to the nearest dollar.
Payrex Co. has six employees. All are paid on a weekly basis. For the payroll period ending January 7, total employee earnings were 12,500, all of which were subject to SUTA, FUTA, Social Security, and Medicare taxes. The SUTA tax rate in Payrexs state is 5.4%, but Payrex qualifies for a rate of 2.0% because of its good record of providing regular employment to its employees. Other employer payroll taxes are at the rates described in the chapter. REQUIRED 1. Calculate Payrexs FUTA, SUTA, Social Security, and Medicare taxes for the week ended January 7. 2. Prepare the journal entry for Payrexs payroll taxes for the week ended January 7. 3. What amount of payroll taxes did Payrex save because of its good employment record?
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Tan's gross pay for the week is $1,400. His year-to-date pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is 6% and that Tan's year-to-date pay has previously exceeded the $7,000 cap. What is the amount of state and federal unemployment tax that his employer must record as payroll tax expense and pay to the federal and state governments?
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