Question

Save & xt She 3. value 10.00 points On January 8, the end of the first weekly pay period of the year, Regis Company's payroll register showed that its employees eaned $27.760 of office salaries and $60,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.20%, FICA Medicare taxes at the rate of 1.45%, $13,060 of federal income taxes $1,460 of medical insurance deductions, and $800 of union dues. No employee eamed more than $7.000 in this first pay period Required: 1.1 Calculate below the amounts for each of these four taxes of Regis Company Regis's merit rating reduces its state unemployment tax rate to 5 % of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.60% ( Round your answers to 2 decimal places.) Regis Company's January 8 earnings subject to tax Tax Tax Rate Tax Amount FICA-Social Security FICA-Medicare FUTA SUTA

Answer 1

Regis Company’s:
Tax	January 8 earnings subject to tax	Tax Rate	Tax Amount
FICA-Social Security	88,600	6.20%	5493.20
FICA-Medicare	88,600	1.45%	1284.70
FUTA	88,600	0.60%	531.60
SUTA	88,600	5.00%	4430.00
1.2
Date	General Journal	Debit	Credit
Jan 8	Office salaries expense	27,760.00
	Sales salaries expense	60,840.00
	FICA—Social sec. taxes payable		5,493.20
	FICA—Medicare taxes payable		1,284.70
	Employee fed. inc. taxes payable		13,060.00
	Employee medical insurance payable		1,460.00
	Employee union dues payable		800.00
	Salaries payable		66,502.10
2
Date	General Journal	Debit	Credit
Jan 8	Payroll taxes expense	11,739.50
	FICA—Social sec. taxes payable		5,493.20
	FICA—Medicare taxes payable		1,284.70
	State unemployment taxes payable		4,430.00
	Federal unemployment taxes payable		531.60