McGraw-Hill Connect Mcloyd Company completed the salary and wage paymoll for Mar
ID: 2552922 • Letter: M
Question
McGraw-Hill Connect Mcloyd Company completed the salary and wage paymoll for March. The payroll provided the following detals Salaries and wages eaned Employee income taxes withheld FICA taxes withheild $580,000 53,650 41.470 4,030 1. Considering both employee and employer payroll taxes, use the preceding information to calculate the total labor cost for the company. 2 &3.Prepare the jounal entry to record the payroll or March, incduding omployee deductions (but excluding employer payrol 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/levent, select "No Journal Entry Required" in the first account field.) View transaction list 1 Record the payroll for March including employee deductions: Salaries and wages earned, $580,000 Employee income taxes withheld, $53,650; FICA taxes withheld, $41,47D; Unemployment taxes, $4,030. and FICA Record the employer's FICA taxes and unemployment taxes: Salaries and wages earned, $580,000; Employee income taxes withheld, $53,650; FICA taxes withheld, $41,470; Unemployment taxes, $4,030. 2 escExplanation / Answer
1. Total labor cost for the company=
Salaries and wages earned by the employes+ Employer's share of FICA taxes+ unemployment taxes
=$ (580,000+41,470+4,030)
=$625,500
2&3. To record the payroll for March
To record employer's FICA and unployment taxes
Date Account name Debit Credit Salaries and wages expenses 580,000 FICA tax withheld payable 41,470 Employees income tax withheld payable 53,650 Net payroll payable 484,880