Question

According to records, Borges Distributors, $1,110,000 was subject to 6.0% SS tax and the 1.5% Medicare tax. Also, $50,000 was subject to state and federal unemployment taxes.

a. Calculate the employer’s payroll taxes, using 4.2% for SUTA, and .8% for FUTA. ____________________________________________________________ _____________________________________________________________ _____________________________________________________________ ______________________________________________________________ ______________________________________________________________

b Journalize the entry to record the payroll taxes ______________________________________________________________ ______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________

Answer 1

Employer Payroll Taxes
Type of tax	Amount	%	Tax (Amt*%)
Social Security Tax	111000	6	$            6,660
Medicare Tax	111000	1.5	$            1,665
SUTA	50000	4.2	$            2,100
FUTA	50000	0.8	$                400
Employer Payroll Taxes	$          10,825
Journal Entry
Account Title and Explaination	Debit $	Credit $
Payroll Tax Expense	$ 10,825
Social Security Tax Payable		$    6,660
Medicare Tax Payable		$    1,665
State Unemployment Tax Payable		$    2,100
Federal Unemployment Tax Payable		$        400