A Company's Payroll for the Week Ended May 15 Included

question 57

Essay

A company's payroll for the week ended May 15 included earned salaries of $20,000.All of that week's pay is subject to FICA Social Security taxes of 6.2% and Medicare taxes of 1.45%.In addition,the company withholds the following amounts for this weekly pay period: $900 for medical insurance; $3,400 for federal income taxes; and $180 for union dues.
a.Prepare the general journal entry to accrue the payroll.
b.The company is subject to state unemployment taxes at the rate of 2% and federal unemployment taxes at the rate of 0.8%.By May 15,some employees had earned over $7,000,so only $9,000 of the $20,000 weekly gross pay was subject to unemployment tax.Prepare the general journal entry to accrue the employer's payroll tax expense.

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Definitions:

FBI

The Federal Bureau of Investigation, a domestic intelligence and security service of the United States, and its principal federal law enforcement agency.

Deviance Is Socially Constructed

The idea that behaviors deemed deviant are determined by society through social processes, rather than any inherent quality of the behavior itself.

Recent Events

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Justice Is Blind

The principle that law should be impartial and not influenced by outside factors such as a person's status, wealth, or power.