1.Your company, Metro Express has five employees, each of whom earn $3,000 per m

Question

1.Your company, Metro Express has five employees, each of whom earn $3,000 per month. Today January 31, 2011 is not a pay day. Each employee wages are subject to FICA social security of 6.5% and FICA Medicare taxes of 1.45% on the first $70,000 earned. Each employee has to contribute to his or her medical insurance coverage of $110 premium.

Please prepare journal entry to record salaries expense and employee taxes.

   2.Please prepare journal entry to record payroll taxes for January 31st for Metro Express.

Refer back to problem above. you are the employer Metro Express. You also have payroll taxes to pay for your employees that include FICA taxes, FUTA taxes of 0.8% of the first $7,000 paid to each employee, SUTA taxes of 4.0% of the first $7,000 paid to each employee.

Explanation / Answer

Salaries expense          15,000

      FICA Payable                         1192.50

      Insurance Payable                 550.00

      Salaries Payable                  13,257.50

Payroll Tax Expense    1912.50

     FICA Payable                          1192.50

     FUTA Payable                           120.00

     SUTA Payable                            600                 

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.