Question

1. Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes. 2. Prepare the journal entry to record the employer's payroll taxes as of September 14, 20--. Round your answers to the nearest cent. If an amount box does not require an entry, leave it blank. Selected information from the payroll register of Joanie's Boutique for the week ended September 14, 20--, is as follows. Social Security tax is 6.2% on the first $118,500 of earnings for each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings. Taxable Earnings Employee Name Cumulative Pay Before Current Earnings Current Gross Pay Unemployment Compensation Social Security Jordahl, Stephanie $6,680 $1,220 Keesling, Emily 6,050 1,100 Palmer, Stefan 55,150 2,420 Soltis, Robin 54,490 2,250 Stout, Hannah 29,140 2,050 Xia, Xu 108,240 11,360

Answer 1

			Taxable Earnings
	Cumulative Pay Before Current Earnings	Current Gross Pay	Unemployment Compensation	Social Security
Jordahl, Stephanie	6680	1220	320	1220
Keesling, Emily	6050	1100	950	1100
Palmer, Stefan	55150	2420	0	2420
Soltis, Robin	54490	2250	0	2250
Stout, Hannah	29140	2050	0	2050
Xia, Xu	108240	11360	0	10260
	Total	20400	1270	19300
1
	Taxable unemployment earnings	1270
	Taxable social security earnings	19300
	Taxable medicare earnings	20400
2
September 14, 20--	Payroll taxes expense	1568.60
	Social Security tax payable		1196.60	=19300*6.2%
	Medicare tax payable		295.80	=20400*1.45%
	FUTA tax payable		7.62	=1270*0.6%
	SUTA tax payable		68.58	=1270*5.4%
	Note:
	Only for Jordahl, Stephanie and Keesling, Emily Unemployment Compensation is payable
	Social Security taxable for Xia, Xu = 118500-108240 = $10260