According to a payroll register summary of Ruiz Company, the amount of employees

Question

According to a payroll register summary of Ruiz Company, the amount of employees' gross pay in December was $850,000, of which $90,000 was not subject to FICA tax and $750,000 was not subject to state and federal unemployment taxes.



Determine the employer's payroll tax expense for the month, using the following rates: FICA 8%, state unemployment 5.4%, federal unemployment 0.8%.
$


Prepare the journal entry to record December payroll tax expense. (For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2.)
Description Debit Credit
__________
__________
__________
__________

Explanation / Answer

FICA Tax: ($850,000 - $90,000) X 8% = $60,800 State Unemployment Tax: ($850,000 - $750,000) X 5.4% = $5,400 Federal Unemployment Tax: ($850,000 - $750,000) X .0.8% = $800 Grand Total = $60,800 + $5,400 + $800 = $67,000

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