Question

The summary of the payroll for the monthly pay period ending December 15 indicated the following:

Sales salaries	$165,000
Federal income tax withheld	32,300
Office salaries	34,000
Medical insurance withheld	14,370
Social security tax withheld	12,200
Medicare tax withheld	4,550

Journalize the entries to record (a) the payroll and (b) the employer's payroll tax expense for the month. The state unemployment tax rate is 3.1%, and the federal unemployment tax rate is 0.8%. Only $30,000 of salaries are subject to unemployment taxes.

This is to be done in Excel so if your answer is similar to that format I would really appreciate it. Thanks!! :)

Answer 1

(a)

Particulars	Debit ($)	Credit($)
Sales Salaries Expense	165,000
Office Salaries Expense	34,000
Social Security Tax Payable		12,200
Medicare Tax Payable		4,550
Federal Income Tax Payable		32,300
Medical Insurance Payable		14,370
Salaries Payable		1,35,580

(b)

Particulars	Debit ($)	Credit($)
Payroll Tax Expenses	17,920
Social Security Tax Payable		12,200
Medicare Tax Payable		4,550
State Unemployment Tax Payable		930
Federal Unemployment Tax Payable		240

State Unemployment Tax Payable = $30,000 x 3.1% = $930

Federal Unemployment Tax Payable = $30,000 x 0.8% = $240