On January 8 the end of the first weekly pay period of the year Royal Companys p

On January 8 the end of the first weekly pay period of the year Royal Companys payroll register showed that its employees earned $11380 of office salaries and $32920 of sales salaries. Withholdings from the employees salaries include FICA Social Security taxes at the rate of 6.2% FICA Medicare taxes at the rate of 1.45% $6340 of federal income taxes $670 of medical insurance deductions and $420 of union dues. No employee earned more than $7000 in this first period. Required 1. Calculate FICA Social Security taxes payable and FICA Medicare taxes payable. Prepare the journal entry to record Royal Companys January 8 (employee) payroll expenses and liabilities. 2. Prepare the journal entry to record Royals (employer) payroll taxes resulting from the January 8 payroll. Royals merit rating reduces its state unemployment tax rate to 4% of the first $7000 paid each employee. The federal unemployment tax rate is 0.8%.

You can leave a response, or trackback from your own site.
error: Content is protected !!