Exercise 13-6 The payroll of Tamarisk Company for September 2016 is as follows.

Question

Exercise 13-6 The payroll of Tamarisk Company for September 2016 is as follows. Total payroll was $458,000, of which $112,000 is exempt from Social Security tax because it represented amounts paid in excess of $118,500 to certain employees. Th amount paid to employees in excess of $7,000 was $416,000. Income taxes in the amount of $84,100 were withheld, as was $9,200 in union dues. The state unemployment tax is 3.5% but Tamarisk Company is allowed a credit of 2. by the state or s unemployment experience. Also ass ur e at the current C xs 7.65% on an employee's wages to $118,500 and 1.45% in excess of $118,500. No employee for Tamarisk makes more than $125,000. The federal unemployment tax rate is 0.8% after state credit. Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately. (Round answers to 0 decimal places, e 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts Credit account titles are automatically indented wh amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record wages and salaries paid) (To record employer payroll taxes)

Explanation / Answer

a Salaries and Wages Expense 458000           Withholding Income Taxes Payable 84100            FICA Taxes Payable 28093 =(458000-112000)*7.65%+(112000*1.45%)            Union Dues Payable 9200             Cash 336607 b Payroll Tax Expense 28933            FICA Taxes Payable 28093            SUTA Taxes Payable 504 =(458000-416000)*1.2%            FUTA Taxes Payable 336 =(458000-416000)*0.8%

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