The summary of the payroll for the monthly pay period ending July 15 indicated t

Question

The summary of the payroll for the monthly pay period ending July 15 indicated the following: sales salaries 115000 federal income tax withheld 32000 Office Salaries 30000 medical insurance withheld 7370 social secuirty tax withheld 10200 medicare tax withheld 2250 Journalize the entries to record (a) the payroll and (b) the employer's payroll tax for the month. The state unemployment tax rate 3.1% and the federal unemployment tax rate .8%. Only $30,000 of salaries are subject to unemployment taxes.

Explanation / Answer

a)
115000 * 0.015 = x Medicare tax
32000 * 0.031= y Fed UI
30000 * 0.008 = z State UI

b)
DR Payroll expenses 10200
CR Medicare tax accrued x
CR Fed UI accrued y
CR State UI accrued z

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