On Jan. 8, the end of the first weekly pay period of the year, Regal Company's payroll register showed that its employees earned $27,760 of office salaries and $70,840 of sales salaries. with holdings from the employees' salaries include FICA
social security taxes at the rate of 6.2%. FICA Medicare taxes at the rate of 1.45%, $13,360 of federal income taxes, $1,350 of medical insurance deductions, and$840 of union dues. No employee earned more than $7,000 in this first period.
1 Calculate FICA Soc Sec taxes payable and FICA Medicare taxes payable. Prepare the journal entry to record Regal Company's Jan 8 (employee) payroll expenses and liabilities.
2 Prepare the journal entry to record Regal's (employer) payroll taxes resulting from the Jan 8 payroll. Regal's merit rating reduces its state unmemployment tax rate to 5% of the first $7,000 paid each employee. The federal unemployment tas rate is 0.8%.
- Jan. 8 Office Salaries Expense 27,760.00
- Sales Salaries Expense 70,840.00
- FICA--Social Sec. Taxes Payable
- FICA--Medicare Taxes payable
- Employee Fed. Inc. Taxes Payable
- Employee Medical Insurance Payable
- Employee Union Dues Payable
- Salaries Payable