In: Accounting
The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be:
Debit | Credit | |
Wages Expense | 24,762.70 | |
FICA Taxes Payable—OASDI | 1,535.29 | |
FICA Taxes Payable—HI | 359.06 | |
FIT Payable | 3,714.00 | |
SIT Payable | 55.25 | |
Group Insurance Payments W/H | 54.70 | |
Cash | 19,044.40 |
Example 6-7
The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of 3.0%):
Debit | Credit | |
Payroll Taxes | 2,785.81 | |
FICA Taxes Payable—OASDI | 1,535.29 | |
FICA Taxes Payable—HI | 359.06 | |
FUTA Taxes Payable | 148.58 | |
SUTA Taxes Payable | 742.88 |
The employees of Carson Bakery Company earn total wages of $7,780 during January. The total amount is taxable under FICA, FUTA, and SUTA. The state contribution rate for the company is 4.3%. The amount withheld for federal income taxes is $998.
Journalize the payment of the monthly wages, and record the payroll taxes.
If an amount box does not require an entry, leave it blank or enter "0". Round your answers to the nearest cent.
Account | Debit | Credit | |
Payment of monthly wages | |||
Payroll taxes | |||
Account | Debit | Credit | |
Payment of monthly wages | |||
Wages Expense | $7,780.00 | ||
FICA Taxes Payable—OASDI ($7,780 x 6.2%) | $482.36 | ||
FICA Taxes Payable—HI ($7,780 x 1.45%) | $112.81 | ||
FIT Payable | $998.00 | ||
SIT Payable ($7780 x 4.3%) | $334.54 | ||
Cash | $5,852.29 | ||
Payroll taxes | Payroll Taxes | $875.25 | |
FICA Taxes Payable—OASDI | $482.36 | ||
FICA Taxes Payable—HI | $112.81 | ||
FUTA Taxes Payable ($7780 x .6%) | $46.68 | ||
SUTA Taxes Payable ($7780 x 3%) | $233.40 |