MRI Company has one employee. FICA Social Security taxes are 6.2% of the first $

Question

MRI Company has one employee. FICA Social Security taxes are 6.2% of the first $106,800 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For MRI, its FUTA taxes are 0.8% and SUTA taxes are 2.9% of the first $7,000 paid to its employee.

Prepare the employer’s September 30 journal entries to record the employer’s payroll taxes expense and its related liabilities. (Round your answers to 2 decimal places. Omit the "$" sign in your response)

MRI Company has one employee. FICA Social Security taxes are 6.2% of the first $106,800 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For MRI, its FUTA taxes are 0.8% and SUTA taxes are 2.9% of the first $7,000 paid to its employee.

Explanation / Answer

Date Account title and Explanation Debit($) Credit($) 30-Sep Salaries Expense 835          FICA social security taxes payable 51.77          FICA medicare taxes payable 12.1075          Employee federal income tax payable 0          Accrued payroll payable 771.1225 To record the salary expense for the month of septemeber

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