Question

On January 8, the end of the first weekly pay period of the year, Regis Company's employees earned $22,760 of office salaries and $70,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $12,860 of federal income taxes, $1,440 of medical insurance deductions, and $880 of union dues. No employee earned more than $7,000 in this first period. Required: 1.1 Calculate below the amounts for each of these four taxes of Regis Company. Regis’s state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. 1.2 Prepare the journal entry to record Regis Company's January 8 employee payroll expenses and liabilities. 2. Prepare the journal entry to record Regis’s employer payroll taxes resulting from the January 8 payroll. Regis’s state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%.

Calculate below the amounts for each of these four taxes of Regis Company. Regis’s state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. (Round your answers to 2 decimal places.)

Prepare the journal entry to record Regis Company's January 8 employee payroll expenses and liabilities. (Round your answers to 2 decimal places.) Record the employee payroll expenses and liabilities for the first weekly pay period of the year.

Prepare the journal entry to record Regis’s employer payroll taxes resulting from the January 8 payroll. Regis’s state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. (Round your answers to 2 decimal places.) Record the employer’s payroll expenses and liabilities for the first weekly pay period of the year.

Answer 1

Calculation of amounts
January 8 earnings subject to tax = Office Salaries + Sales Salaries   = $22,760 + $70,840 = $93,600
Regis company
Tax	January 8 earnings subject to tax	Tax rate	Tax amount
FICA-Social Security	$93,600	6.20%	$5,803.20
FICA-Medicare	$93,600	1.45%	$1,357.20
FUTA	$93,600	0.60%	$561.60
SUTA	$93,600	5.40%	$5,054.40
Preparation of journal entry to record payroll tax expense
Date	Account Titles and Explanation	Debit (In $)	Credit (in $)
Jan-08	Office salaries expense	$22,760
	Sales salaries expense	$70,840
	FICA—Social security taxes payable		$5,803.20
	FICA—Medicare taxes payable		$1,357.20
	Employee Federal income taxes payable		$12,860
	Employee medical insurance payable		$1,440
	Employee union dues payable		$880
	Salaries payable (Bal fig. / Plug)		$71,259.60
	(To record the pay roll expenses and Liabilities)
Jan-08	Payroll taxes expense	$12,776.40
	FICA—Social security taxes payable		$5,803.20
	FICA—Medicare taxes payable		$1,357.20
	State unemployment taxes payable		$5,054.40
	Federal unemployment taxes payable		$561.60
	(To record the pay roll Tax expense )