ON Aug 31, 2014 payroll data from the records of Astroland Enterprises showed: P
ID: 2389551 • Letter: O
Question
ON Aug 31, 2014 payroll data from the records of Astroland Enterprises showed:Payroll: Facatory Wages 125,000 Office Salaries 82,500 Sales Salaries 98,000
Payroll Deductions: Income tax withholding 47,800 FICA tax (7.65%)
Wages and salaries NOT subject to FICA tax: Factory wages 28,000
Office Salaries: 40,000 Sales salaries: 45,000
Wages and salaries NOT subject to federal and state unemployment taxes:
Factory Wages 60,000 Office Salaries: 80,000 Sales salaries 72,000
1) record the payment of the payroll on August 31, 2014
2) record the employers payroll tax liabilities ( the federal unemployment tax rate is 0.8 % and the state unemployment tax rate is 5.4%)
Explanation / Answer
31-Aug Wages Expense $125,000.00 Office Salaries Expense 82,500.00 Sales Salary Expense 98,000.00 Witholding Taxes Payable $47,800.00 FICA taxes Payable 14,726.25 Cash 242,973.75 FICA taxes Payable : Wages and Salaries subject to FICA : Wages Expense 97,000.00 Office Salaries Expense 42,500.00 Sales Salary Expense 53,000.00 Total Amount subject to FICA 192,500.00 FICA Taxes Payable 14,726.25 31-Aug Payment of Employer Payroll taxes : Payroll Tax Expense 23,871.25 FICA Taxes Payable 14,726.25 Federal Unemployment Taxes Payable 1,180.00 State Unemployment Taxes Payable 7,965.00 Wages and Salaries subject to Federal and State Unemployment Taxes : Wages Expense 119,000.00 Office Salaries Expense 2,500.00 Sales Salary Expense 26,000.00 Wages and Salaries subject to Federal 147,500.00 and State Unemployment Taxes : Federal Unemployment Tax 1,180.00 State Unemplyment Tax 7,965.00
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