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The Payroll Register of Seaside Architecture Company Indicates $870 of Social

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Essay

The payroll register of Seaside Architecture Company indicates $870 of Social Security and $217 of Medicare tax withheld on total salaries of $14,500 for the period. Assume earnings subject to state and federal unemployment compensation taxes are $5,250. at the federal rate of 0.8% and state rate of 5.4%. Provide the journal entry to record the payroll tax expense for the period.


Definitions:

Liability

A legal responsibility or obligation, often of a financial nature.

Ratification

The act of giving formal consent to a treaty, contract, or agreement, making it officially valid.

Void

A legal term indicating that a contract or agreement is null, invalid, and has no legal effect.

Disaffirm

The legal act of denying or rejecting a contract or agreement, especially by a party who was not competent to enter it at the time of agreement.

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