In: Accounting
The following information pertains to the payrolls of Warrs Company for November 2018:
Employees Wage earned Wage earned Federal Income State/local
By 10/31/2018 in November 2018 Tax Income Taxes
Jane $105,000 $12,000 $1,500 $650
Tom 60,000 7,000 500 250
Bill 6,000 1,200 0 0
Actual state unemployment tax rate is 4%, while the federal unemployment tax rate is 1%. The taxable income limit for social security tax is $110,000/person, year, while the taxable income limit of SUTA and FUTA is $7,000/ person, year.
- Prepare the necessary journal entries for November payrolls of Warrs Company if salaries and wages are paid in cash after withholding all payroll taxes and dues.