The Payroll Records of a Company Provided the Following Data

question 150

Essay

The payroll records of a company provided the following data for the weekly pay period ended December 7:
The FICA social security tax rate is 6.2% and the FICA Medicare tax rate is 1.45% on all of this week's wages paid to each employee.The federal and state unemployment tax rates are 0.8% and 5.4%,respectively,on the first $7,000 paid to each employee.Prepare the journal entries to (a)accrue the payroll and (b)record payroll taxes expense.

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Definitions:

Taft-Hartley Act

A U.S. federal law enacted in 1947 that restricts the activities and power of labor unions.

Right-To-Work Organizations

Groups that advocate for the legal right of employees to choose whether or not to join or support a labor union in their workplace.

NLRB

The National Labor Relations Board, a US government agency responsible for enforcing US labor law in relation to collective bargaining and unfair labor practices.

Bylaws

Rules that guide a corporation’s day-to-day internal affairs. Also known as regulations.