Payroll Taxes, Deposits, and Reports Problem Set B Computing and recording emplo

Question

Payroll Taxes, Deposits, and Reports Problem Set B Computing and recording employer's payroll tax expense. The payroll register of Cliff's Auto Detailers showed total employee earnings of $4,000 for the week ended April 8, 2019. INSTRUCTIONS 1. Compute the employer's payroll taxes for the period. The tax rates are as follows: Social security 6.2 percent Medicare 1.45 FUTA SUTA 2.2 0.6 2. Prepare a general journal entry to record the employer's payroll taxes for the period. Use journal page 28. Analyze: If the SUTA tax rate had been 1.2 percent, what total employer payroll taxes would have been recorded?

Explanation / Answer

Req 1. Employer's Payroll Taxes: Social Security Tax (4000*6.2%) 248 Medicare (4000*1.45%) 58 FUTA (4000*0.6%) 24 SUTA (4000*2.2%) 88 Total Employer tax expense 418 Req 2: Journal entry: Payroll Tax expense Account Dr. 418      FICA Social Security Tax payable 248      FICA Medicare tax payable 58      Federal Unemployment tax payable 24      State Unemployment tax payable 88 Employer's Payroll Taxes: Social Security Tax (4000*6.2%) 248 Medicare (4000*1.45%) 58 FUTA (4000*0.6%) 24 SUTA (4000*1.2%) 48 Total Employer tax expense 378

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