Widmer Company had gross wages of $193,000 during the week ended June 17. The am

Question

Widmer Company had gross wages of $193,000 during the week ended June 17. The amount of wages subject to social security tax was $193,000, while the amount of wages subject to federal and state unemployment taxes was $24,000. Tax rates are as follows: Social security Medicare State unemployment Federal unemployment The total amount withheld from employee wages for federal taxes was $38,600 If an amount box does not require an entry, leave it blank. a. Journalize the entry to record the payroll for the week of June 17. 6.0% 1.5% 5.3% 0.8% b· Journalize the entry to record the payroll tax expense incurred for the week? une 17.

Explanation / Answer

a. Account Title Debit Credit Wages Expense 193000 FICA social security payable 11580 FICA medicare payable 2895 Federal incometax payable 38600 Wages Payable 139925 FICA social secutiry = 6% of $193,000 = $11,580 FICA medicare = 1.5% of $193,000 = $2,895 b. Account Title Debit Credit Payroll tax expense 15939 FICA social security payable 11580 FICA medicare payable 2895 State unemployement tax payable 1272 Federal unemployment tax payable 192 State Unemployment tax = 5.3% of $193,000 = $1,272 Federal Unemployment tax = 0.8% of $193,000 = $192

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