A company\'s payroll for the week ended May 15 included earned salaries of $20,0
ID: 2596908 • Letter: A
Question
A company's payroll for the week ended May 15 included earned salaries of $20,000. All of that week's pay is subject to FICA social security taxes of 6.2% and Medicare taxes of 1.45%. In addition, the company withholds the following amounts for this weekly pay period: $900 for medical insurance, $3,400 for federal income taxes, and $180 for union dues.
Type in how much would be credited to FICA - Medicare Taxes Payable in the entry to record the payroll. Round all answers to the nearest dollar. Be sure to omit any dollar signs ($), commas, and decimals.
Explanation / Answer
Answer:
FICA- Medicare Taxes Payable = 20000 * 1.45%
FICA- Medicare Taxes Payable = 290
FICA-Medicare Taxes Payable will be credited by $290, while recording the Payroll.
The Journal Entry to record payroll will be:
Sales Salaries Expense 20,000
FICA- Social Security Taxes 1,240
FICA- Medicare Taxes Payable 290
Employees Medical Insurance Payable 900
Employees Income Taxes Payable 3,400
Employees Union Dues Payable 180
Accrued Payroll Payable 13,990
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