Question:
ABC Inc. pays its employees monthly. The payroll information is listed below this is for January 2013, the first moth of ABC's fiscal year.
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Salaries
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$80,000
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Federal income taxes to be withheld
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16,000
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Federal unemployment tax rate
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0.80%
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State umemployment tax rate (after FUTA deduction)
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5.40%
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Social security tax rate
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6.2%
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Medical Tax Rate
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1.45%
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REQUIRED: Prepare the journal entry to record payroll for the January 2013 pay period