On January 8, the end of the first weekly pay perlod of the year, Regis Company\

Question

On January 8, the end of the first weekly pay perlod of the year, Regis Company's payroll register showed that its employees earned $22,760 of office salaries and $65,840 of sales salarles. Withholdings from the employees' salarles Include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $12,860 of federal income taxes, $1340 of medical Insurance deductions. and $840 of union dues. No employee earned more than $7,000 In this first period. Required 1.1 Calculate below the amounts for each of these four taxes of Regis Company. Regis's merit rating reduces its state unemployment tax rate to 4% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.6%. (Round your answers to 2 decimal places.) Regis Company's January 8 Earnings Subject to Tax Tax Rate Tax Amount 6.20% FICA-Social Security FICA-Medicare FUTA SUTA 88,600 5,493.20 88,600 1.45% : 1,284.70 1.2 Prepare the journal entry to record Regis Company's January 8 (employee) payroll expenses and liablties. (Round your answers to 2 declmal places.) View transaction list

Explanation / Answer

1.1 Regis Company’s: Tax January 8 earnings subject to tax Tax Rate Tax Amount FICA-Social Security $88,600 6.20% $5,493.20 FICA-Medicare $88,600 1.45% $1,284.70 FUTA $88,600 0.60% $531.60 SUTA $88,600 4.00% $3,544.00 1.2 Date General Journal Debit Credit 8-Jan Office salaries expense 22,760.00 Sales salaries expense 65,840.00 FICA—Social sec. taxes payable 5,493.20 FICA—Medicare taxes payable 1,284.70 Employee fed. inc. taxes payable 12,860.00 Employee medical insurance payable 1,340.00 Employee union dues payable 840 Salaries payable 66,782.10 2 Date General Journal Debit Credit 8-Jan Payroll taxes expense 10,853.50 FICA—Social sec. taxes payable 5,493.20 FICA—Medicare taxes payable 1,284.70 State unemployment taxes payable 3,544.00 Federal unemployment taxes payable $531.60

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