Takei Company\'s payroll for the week ending January 15 amounted to $367,000 for

Question

Takei Company's payroll for the week ending January 15 amounted to $367,000 for salaries and wages. None of the employees has reached the earnings limits specified for federal or state employer payroll taxes. The following deductions were withheld from employees' salaries and wages:

Federal unemployment tax (FUTA) rate is 6.2% less a credit equal to the rate paid for state unemployment taxes. The state unemployment tax (SUTA) rate is 5.4%.

Instructions: Prepare the journal entry to record the weekly payroll ending January 15 and also the employer's payroll tax expense on the payroll.

Federal Income Tax $75,000 State Income Tax 13,500 FICA Taxes 28,075 Union Dues 4,100 United Fund Contributions 2,700

Explanation / Answer

Salaries and Wages Expense 367000          FICA Taxes Payable 75000          Federal Income Taxes Payable 13500          State Income Taxes Payable 28075          Union Dues Payable 4100          United Fund Contributions payable 2700         Salaries and Wages Payable 243625 Payroll tax expense 97754          FICA Taxes Payable 75000          Federal unemployment tax payable 2936 =367000*0.8%          State unemployment tax payable 19818 =367000*5.4%

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