oO AT&T; LTE 14:02 50% 6-2 Homework Chapter… Lee Financial Services pays employe

Question

oO AT&T; LTE 14:02 50% 6-2 Homework Chapter… Lee Financial Services pays employees monthly Payroll information is listed below for January 2013, the first month of Lee's fiscal year. Assume hat none of the employees exceeded any relevant wage base Salaries Federal income taxes to be withheld Federal unemployment tax rate State tax rate (after SAS FUTA deduction) Required: Complete the following table to calculate the taxes withheld from the employee and the employer Prepare the appropriate journal entries to record salaries and wages expense and payroll tax expense for the January 2013 pay period. If no entry is required for a particular event, select "No journal entry required" in the first account field.) Journal Entry Worksheet Record salaries and wage expense for anuary 2013 pay peried

Explanation / Answer

Since Question is not clear, So We are doing this question taking Salaries as $530,000 and federal income tax to be withheld as $106,000.

Amount withheld from

employees' gross pay

Amount paid by the

employer

Answer to 2:

Salaries and wages expense (total amount earned) .....530,000

Withholding taxes payable (federal income tax) ... 106,000

Social security taxes payable ($530,000 x 6.2%) .. 32,860

Medicare taxes payable ($530,000 x 1.45%) ......... 7,685

Salaries and wages payable (net pay) .................383,455

Payroll tax expense (total) ......................................72,345

Social security taxes payable (employer’s matching amount) 32,860

Medicare taxes payable (employer’s matching amount) 7.685

Federal unemployment tax payable ($530,000 x 0.6%) 3,180

State unemployment tax payable ($530,000 x 5.4%) 28,620

Tax

Amount withheld from

employees' gross pay

Amount paid by the

employer

Federal Income taxes to be withheld 106,000 0 Social Security (6.2%) 32,860 32,860 Medicare (1.45%) Tax Rate 7,685 7,685 Federal Unemployment Tax 0 3,180 State Unemployment Tax 0 28,620 Total 146,545 72,345

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