Payroll Accounting 2017 6-8A LO 3 See pages 6-18 and 6-19 The employees of Pelte

Question

Payroll Accounting 2017 6-8A LO 3 See pages 6-18 and 6-19 The employees of Pelter Company earn wages of $12,000 for the two weeks ending April 14. FIT taxes of $260 were withheld. The entire amount of wages is subject to the FICA taxes, but only $9,800 is taxable under the tederal and state unemployment compensation laws. The state contribution rate of the employer is 2.9%. All employees are subject to state unemployment contributions of 0.5% on the April 14 taxable wages of $9,800, and the employees' contributions are to be deducted by the employer. lournalize the payment of the wages, and record the payroll taxes, assuming that the contributions of the employer and the employees are recorded in one account, SUTA Taxes Payable. JOURNAL POST REF DATE DESCRIPTION DEBIT CREDIT 10

Explanation / Answer

31-Dec Wages expense 12000                Fica taxes payable 744 (12000*6.2%)                SUTA taxes payable 49 (9800*.5%)                FIT payable 260                Cash 10947 31-Dec Payroll expenses 1107                FICA taxes payable 744                SUTA taxes payable 284 (9800*2.9%)                FUTA taxes payable 78 (9800*.8%)

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