Merger Co. has ten employees, each of whom earns $2,000 per month and has been e
ID: 2381802 • Letter: M
Question
Merger Co. has ten employees, each of whom earns $2,000 per month and has been employed since January 1. FICA Social Security taxes are 6.2% of the first $110,100 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.8% and SUTA taxes are 5.4% of the first $7,000 paid to each employee.
Prepare the March 31 journal entry to record the March payroll taxes expenses.
So far I have most of the journals figured out, just a couple i need.
Payroll Tax expense DR?? CR??
FICA-Medicare TaxesPayable DR- CR-290.00
State Unemployment taxes payable - DR??CR??
I need the payroll tax expense and state unemployment taxes payable.
Thanks!:)
Merger Co. has ten employees, each of whom earns $2,000 per month and has been employed since January 1. FICA Social Security taxes are 6.2% of the first $110,100 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.8% and SUTA taxes are 5.4% of the first $7,000 paid to each employee.
Explanation / Answer
salary for month = 10 employees x 2000/mo = $20,000/ mo in salary
2 months 2 $20000 = $40,000 paid salaries
fica expense = 40000 x .0765 = $3,060
dr. wages expense