MRI Company has one employee. FICA Social Security taxes are 6.20% of the first
ID: 2417376 • Letter: M
Question
MRI Company has one employee. FICA Social Security taxes are 6.20% of the first $106,800 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For MRI, its FUTA taxes are 0.80% and SUTA taxes are 2.90% of the first $7,000 paid to its employee.
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 $139.50 for this pay period. (Round your answers to 2 decimal places. Omit the "$" sign in your response)
MRI Company has one employee. FICA Social Security taxes are 6.20% of the first $106,800 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For MRI, its FUTA taxes are 0.80% and SUTA taxes are 2.90% of the first $7,000 paid to its employee.
Explanation / Answer
1. Wages expense 900
social security tax payable 55.80 (900*6.20% )
medicare tax payable 13.05 (900*1.45%)
fedral income tax payable 139.50
Wages payable 691.65
2. Payroll tax expense 84.75
Social security tax payable 55.80
Medicare tax payable 13.05
FUTA payable 7.2 (900*.80%)
SUTA payable 8.7 (7,000-6,700)*2.90% , (300*2.90%)
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