Required information Use the following information for the Exercises below [The

Question

Required information Use the following information for the Exercises below [The following information applies to the questions displayed belowj BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 2.9% of the first $7,000 paid to its employee Gross Pay for September $ 1,700 4,000 9,900 Gross Pa through August a. $6,400 20,100 114,100 Exercise 11-6 Payroll-related journal entries LO P2 Assuming situation a, prepare the employer's September 30 journal entries to record salary expense and its related payroll liabilities for this employee. The employee's federal income taxes withheld by the employer are $60 for this pay period. (Round your answers to 2 decimal places.)

Explanation / Answer

Salary expense is salary accrued for this employee, $1,700.

Payroll tax expense is the employer portion of FICA, SUTA and FUTA tax. FICA is social security (1700*6.2%) plus medicare (1700*1.45%), 130.05 plus FUTA is (1700*0.6%), 10.20 and SUTA is 1700*2.9%, 49.30, total of 189.55

Federal tax withheld of $60 is the federal tax liability.

FICA taxes payable includes employee portion and the employer portion of social security and medicare. Social security is 105.40*2, 210.80 and medicare is 24.65*2, 49.30, total of 260.10

FUTA and SUTA payable are employer portion of unemployment taxes only.

Date General journal Debit Credit Sep.30 Salary expense 1,700.00 Payroll tax expense     189.55 Salary payable      1,509.95 Federal income tax payable            60.00 FICA taxes payable         260.10 FUTA payable            10.20 SUTA payable            49.30

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