Question

BCS corporation has a gross salary of 5500 for the most recent pay period federal income taxes are 845FUTA taxes are $46 and SUTA taxes are 223 the total OASDI tax is 12.4% and the total Medicare tax is 2.9% employer and employee each pays half of both FICA taxes state taxes or 3% of gross salaries

1.) withholding of employees taxes

2.) payment of payroll taxes by the company

Answer 1

Account titles and explanation	Debit	Credit
Salaries and Wages Expense	$5,500.00
Federal Income Taxes Payable		$   845.00
State Income Taxes Payable		$   165.00
OASDI Taxes Payable		$   341.00
Medicare Payable		$     79.75
Salaries & Wages Payable		$4,069.25
Payroll Tax Expense	$   775.00
OASDI Taxes Payable		$   165.00
Medicare Payable		$   341.00
FUTA Taxes Payable		$     46.00
SUTA Taxes Payable		$   223.00

Gross Salary	$ 5,500.00
Withholding
Federal Income Taxes Payable	$    845.00
State Income Taxes Payable	$    165.00
OASDI Taxes Payable	$    341.00
Medicare Payable	$      79.75
Total Withholding	$ 1,430.75
Net Pay	$ 4,069.25