Payroll Entries Widmer Company had gross wages of $314,000 during the week ended

Question

Payroll Entries Widmer Company had gross wages of $314,000 during the week ended June 17. The amount of wages subject to social security tax was $282,600, while the amount of wages subject to federal and state unemployment taxes was $39,000. Tax rates are as follows: Social security 6.0% Medicare 1.5% State unemployment 5.3% Federal unemployment 0.8% The total amount withheld from employee wages for federal taxes was $62,800. If an amount box does not require an entry, leave it blank. a. Journalize the entry to record the payroll for the week of June 17. b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.

Explanation / Answer

1 Salaries and wages expense 314000                  Social security taxes payable 16956 (282600*6%)                 Medicare taxes payable 4710 (314000*1.5%)                 Federal income tax payable 62800                 Salaries and wages payable 229534 2 Payroll tax expenses 24045                FICA taxes payable 16956                 Medicare taxes payable 4710                State unemployement taxes payable 2067 (39000*5.3%)                Federal unemployement taxes payable 312 (39000*.8%)

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