The payroll register of Total Garden Care showed total employee earnings of $3,500 for the payroll period ended July 14, 2013.

The payroll register of Total Garden Care showed total employee earnings of $3,500 for the payroll period ended July 14, 2013.

 

1.

Compute the employer’s payroll taxes for the period. Use rates of 6.2 percent for the employer’s share of the social security tax, 1.45 percent for Medicare tax, 0.8 percent for FUTA tax, and 5.4 percent for SUTA tax. All earnings are taxable. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Tax	Amount
Social Security	$
Medicare
FUTA
SUTA
Total	$

2.	Prepare a general journal entry for the year 2013 to record the employer’s payroll taxes for the period. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Date		General Journal	Debit	Credit
July	14	Payroll taxes expense
		Social security tax payable
		Medicare tax payable
		Federal unemployment tax payable
		State unemployment tax payable

Analyze:

Which of the below taxes are paid by the employee and matched by the employer?

Social security and Medicare taxes

Explanation:

Tax	Base			Rate			Amount
Social Security	$	3,500.	00		6.2	%	$	217.00
Medicare		3,500.	00		1.45	%		50.75
FUTA		3,500.	00		0.8	%		28.00
SUTA		3,500.	00		5.4	%		189.00
Total							$	484.75