Question

Lee Company has the following information for the pay period of December 15–31:

Gross payroll	$15,189		Federal income tax withheld	$2,227
Social security rate	6%		Federal unemployment tax rate	0.8%
Medicare rate	1.5%		State unemployment tax rate	5.4%

Assuming no employees are subject to ceilings for taxes on their earnings, Salaries Payable would be recorded for

a.$11,822.83

b.$10,881.11

c.$12,020.28

d.$15,189.00

Answer 1

Gross payroll	15189
Social security rate	6%
Medicare rate	1.50%
Federal income tax withheld	2227
Federal unemployment tax rate	0.80%
State unemployment tax rate	5.40%
Gross payroll	15,189.00
Social security rate	911.34
Medicare rate	227.84
Federal income tax withheld	2,227.00
Federal unemployment tax rate	-
State unemployment tax rate	-
	11,822.83

Formula

Gross payroll	15189
Social security rate	0.06
Medicare rate	0.015
Federal income tax withheld	2227
Federal unemployment tax rate	0.008
State unemployment tax rate	0.054
Gross payroll	=G3
Social security rate	=G4*G10
Medicare rate	=G5*G10
Federal income tax withheld	=G6
Federal unemployment tax rate	0
State unemployment tax rate	0
	=G10-SUM(G11:G15)