McLoyd Company completed the salary and wage payroll for March 2013. The payroll

Question

McLoyd Company completed the salary and wage payroll for March 2013. The payroll provided the following details:

Considering both employee and employer payroll taxes, use the preceding information to calculate the total labor cost for the company.

Prepare the journal entry to record the payroll for March, including employee deductions (but excluding employer payroll taxes). Employees were paid in March but amounts withheld were not yet remitted.

Prepare the journal entry to record the employer

McLoyd Company completed the salary and wage payroll for March 2013. The payroll provided the following details:

Explanation / Answer

Hi,

Please find the answers as follows:

Part 1:

Total Labor Cost = 410000 (Salaries and wages) + 29315 (FICA Taxes) + 2850 (Unemployment Taxes) = 442165

Part 2:

Salaries and Wages Expense Dr. 410000

Withheld Income Taxes Payable Cr. 37925

FICA Taxes Withhheld Cr. 29315

Cash Cr. 342760

Part 3:

Payroll Tax Expense Dr. 32165

FICA Payable Cr. 29315

Umeployment Taxes Payable Cr. 2850

Thanks.

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