Response to the following :
For the week ended May 31, Quality Roofing withheld the following taxes from its employees:
Federal income taxes withheld $12,000
FICA taxes withheld 2,702
Prepare the journal entry to record the tax deposit to People's Bank. Include the employees' and the employer's share (computed in Practice Exercise ) of FICA taxes.
Practice Exercise :
Quality Roofing has the following payroll information for the week ended May 31:
Total payroll $56,000
Taxable earnings subject to Social Security 45,000
Taxable earnings subject to unemployment tax 2,000
Using the preceding tax rates, prepare the journal entry to record the employer's payroll tax liability.