According to a Summary of the Payroll of Sinclair Company

question 58

Essay

According to a summary of the payroll of Sinclair Company, $505,000 was subject to the 6.0% social security tax and $545,000 was subject to the 1.5% Medicare tax. Also, $10,000 was subject to state and federal unemployment taxes.
(a)Calculate the employer's payroll taxes using the following rates: State unemployment, 4.2%; Federal unemployment, 0.8%.
(b)Journalize the entry to record the accrual of the employer's payroll taxes.

---

Definitions:

Nicotine

A potent chemical found in tobacco plants that acts as a stimulant and is highly addictive, commonly consumed through smoking cigarettes.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, which can cause intense high and is highly addictive.

Amphetamines

A class of potent stimulant drugs that affect the central nervous system, enhancing alertness and energy.

Appetite

A natural desire to satisfy a bodily need, especially for food.