Question

The payroll register of Castilla Engineering Co. indicates $1,086 of social security withheld and $271.50 of Medicare tax withheld on total salaries of $18,100 for the period. Earnings of $5,600 are subject to state and federal unemployment compensation taxes at the federal rate of 0.6% and the state rate of 5.4%. Provide the journal entry to record the payroll tax expense for the period. If an amount box does not require an entry, leave it blank. Round to two decimal places.

Answer 1

Payroll tax expense	1693.50
Social security tax payable		1086.00
Medicare tax payable		271.50
Federal unemployment tax payable		33.60	=5600*0.6%
State unemployment tax payable		302.40	=5600*5.4%