Question

The total wage expense for Lake Co. was $152,000. Of this​ total, $26,000 was above the OASDI wage base limit and not subject to this tax. All earnings are subject to Medicare​ taxes, and $64,000 was above the federal and state unemployment wage base limits and not subject to unemployment taxes. Please calculate and journalize the total payroll tax expense for Lake Co. given the following rates and wage base​ limits:

a. FICA tax​ rate: OASDI, 6.2​% with a wage base limit of $127,200​; ​Medicare, 1.45​% with no wage base limit

b. State unemployment tax rate 5.4​% with a wage base limit of​ $7,000

c. Federal unemployment tax rate​ (after credit): 0.6​% with a wage base limit of​ $7,000

Calculate the total payroll tax expense for Lake Co.

FICA - OASDI-
FICA - Medicare-
FUTA-
SUTA-
Total-

Answer 1

	Gross Earnings	Deductions	Taxable Amount	Rate	Tax Expense
FICA - OASDI-	$152,000	$26,000	$126,000	6.20%	$7,812
FICA - Medicare-	$152,000	0	$152,000	1.45%	$2,204
FUTA-	$152,000	$64,000	$88,000	0.60%	$528
SUTA-	$152,000	$64,000	$88,000	5.40%	$4,752
Total					$15,296

Account Titles and Explanation	Debit	Credit
Payroll Tax Expense	$15,296
FICA Social Security Payable		$7,812
FICA Medicare Payable		$2,204
SUTA Payable		$4,752
FUTA Payable		$528