Problem - According to a summary of the payroll of Sinclair Company, $505,000 was subject to the 6.0% social security tax and $545,000 was subject to the 1.5% Medicare tax. Also, $10,000 was subject to state and federal unemployment taxes.
Required:
(a) Calculate the employer's payroll taxes using the following rates: State unemployment, 4.2%; Federal unemployment, 0.8%.
(b) Journalize the entry to record the accrual of the employer's payroll taxes. Refer to the Chart of Accounts for exact wording of account titles.
First Question: Calculate the employer's payroll taxes using the following rates: State unemployment, 4.2%; Federal unemployment, 0.8%.
Employer's payroll taxes$
Journalize the entry to record the accrual of the employer's payroll taxes on December 31. Refer to the Chart of Accounts for exact wording of account titles.