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 | |||||||
| | | ||||||||
| | |||||||||
