Question

1. 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. (10 points)

1. 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

Please hit LIKE button if this helped.
For any further explanation, please put your query in comment,
will get back to you.
Part a
Payroll Taxes:
Social Security Tax	$1,110,000*6%	$     66,600
Medicare Tax	$1,110,000*1.5%	$     16,650
SUTA	$50,000*4.2%	$        2,100
FUTA	$50,000*0.8%	$           400
Toatl Payroll Taxes		$     85,750
Part b
Payroll Tax Expense	$                      85,750
Social Security Tax Payable		$     66,600
Medicare Tax Payable		$     16,650
State Unemployment Tax Payable		$        2,100
Federal Unemployment Tax Payable		$           400