The payroll of Delaney Company for September 2010 is as follows. Total payroll was $604,800, of which $176,400 is exempt from Social Security tax because it represented amounts paid in excess of $102,000 to certain employees. The amount paid to employees in excess of $7,000 was $516,600. Income taxes in the amount of $100,800 were withheld, as was $11,340 in union dues. The state unemployment tax is 3.5%, but Delaney Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current F.I.C.A. tax is 7.65% on an employee's wages to $102,000 and 1.45% in excess of $102,000. No employee for Delaney makes more than $125,000. The federal unemployment tax rate is 0.8% after state credit.
Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately.
- Wages and salaries expense $604,800
- Cash 457,329.60
- Withholding taxes payable 100,800
- FICA taxes payable 35,330.40
- Union dues payable 11,340
- Payroll tax expense ?
- FICA taxes payable 35,330.40
- Federal Unemployment Tax Payable ?
- State Unemployment Tax Payable ?