View Connect https newconnect Part 02-Chapters 07-11 G Help Save& Exit Submit Ch

Question

View Connect https newconnect Part 02-Chapters 07-11 G Help Save& Exit Submit Check my work Merger Co. has 10 employees, each of whom earns $2.050 per month and has been employed since January 1 Security taxes are 62% of the first $118,500 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. are 06% and SUTA taxes are 5.4% of the first $7000 paid to each employee. . FICA Social FUTA taxes 9 Prepare the March 31 journal entry to record the March payroll taxes expenses. (Round your answers to 2 decimal Journal entry worksheet Record employer payroll taxes. Note: Enter debits before 20 3 4 7 8

Explanation / Answer

Gross pay per employee till March 31=$2050*3

=$6,150. as gross pay is still less than FUTA and SUTA are also payable.

Taxes per employee and total employees are as follows:

Journal entry for payroll tax expense is as follows:

Taxes Rate Amount Total taxes FICA social security taxes 6.20% 127.1 1271 FICA Medicare taxes 1.45% 29.725 297.25 FUTA taxes 0.60% 12.3 123 SUTA taxes 5.40% 110.7 1107 Total taxes 279.825 2798.25

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