McLoyd Company completed the salary and wage payroll for March. The payroll prov
ID: 2449232 • Letter: M
Question
McLoyd Company completed the salary and wage payroll for March. 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), employer’s FICA taxes and unemployment taxes. Employees were paid in March but amounts withheld were not yet remitted. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
2. Record the payroll for March including employee deductions: Salaries and wages earned, $590,000; Employee income taxes withheld, $54,575; FICA taxes withheld, $42,185; Unemployment taxes, $4,100.
3. Record the employer's FICA taxes and unemployment taxes: Salaries and wages earned, $590,000; Employee income taxes withheld, $54,575; FICA taxes withheld, $42,185; Unemployment taxes, $4,100.
salaries and wages earned 590,000 employee income taxes withheld 54,575 FICA taxes withheld 42,185 Unemployment taxes 4,100Explanation / Answer
Solution:
(2).
Date Particulars Debit Credit March -31 Salaries and Wages $5,90,000 Employee income taxes withheld $54,575 FICA taxes withheld $42,185 Unemployment taxes $4,100. Cash $4,89,140 ( To Employe Paroll Salaries Declared )