Metro Express Has Five Sales Employees,each of Whom Earns $4,000

question 123

Essay

Metro Express has five sales employees,each of whom earns $4,000 per month and is paid on the last working day of the month.Each employee's wages are subject to FICA Social Security taxes of 6.2% and Medicare taxes of 1.45% on all wages.Withholding for each employee also includes federal income tax of 16% and monthly medical insurance premiums of $110 for each employee.
a.Prepare the general journal entry to accrue the monthly sales salaries expense at January 31.
b.The employer payroll taxes for Metro Express include: FICA taxes,federal unemployment taxes of 0.8% on the first $7,000 paid to each employee,and state unemployment taxes of 4.0% on the first $7,000 paid to each employee.Prepare the journal entry to record the employer's payroll taxes at January 31 for Metro Express.

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Definitions:

Medical Director

A physician responsible for overseeing the clinical and administrative operations within a healthcare organization or facility.

Practice Manager

An individual responsible for overseeing the day-to-day operations of a medical or dental practice.

Policies And Procedures Manual

A comprehensive document that outlines the guidelines, rules, and detailed steps for operations and activities within an organization.

Administrative Procedures

The structured processes and sets of practices that govern the operation and management of organizations or institutions.