Caribbean Tours\' total payroll for the month of January was $460,000. The follo
ID: 2556941 • Letter: C
Question
Caribbean Tours' total payroll for the month of January was $460,000. The following withholdings, fringe benefits, and payroll taxes apply: Federal and state income tax withheld Health insurance premiums paid by employer (payable to Blue Cross) Contribution to retirement plan paid by employer (payable to Fidelity) FICA tax rate (Social Security and Medicare) Federal and state unemployment tax rate $46,000 8,280 18,400 7.65 % 6.20 % Assume that none of the withholdings or payroll taxes has been paid by the end of January (record them as payables), and no employee's cumulative wages exceed the relevant wage bases Required 1. Record the employee salary expense, withholdings, and salaries payable. 2. Record the employer-provided fringe benefits. 3. Record the employer payroll taxes. Record the necessary entry for the scenarios given above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)Explanation / Answer
31-Jan Salaries expense 460000 Income tax payable 46000 FICA tax payable 35190 =460000*7.65% Salaries payable 378810 31-Jan Salaries expense 26680 Accounts payable (Blue Cross) 8280 Accounts payable (Fidelity) 18400 31-Jan Payroll tax expense 63710 FICA tax payable 35190 Unemployment tax payable 28520 =460000*6.2%