Question

On January 8, the end of the first weekly pay perlod of the year, Regis Company's payroll register showed that its employees earned $23,760 of office salarles and $70,840 of sales salaries. Withholdings from the employees' salarles Include FICA Social Security taxes at the rate of 6.20%, FICA Medicare taxes at the rate of 1.45%, $12.760 of federal income taxes, $1,350 of medical insurance deductions, and $880 of union dues. No employee earned more than $7,000 In this first 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 each employee. The federal unemployment tax rate is 0.60%. (Round your answers to 2 decimal places.) Regis Company's January 8 earning:s subject to tax Tax Rate Tax Tax Amount FICA-Social Security FICA-Medicare FUTA SUTA View transaction list Journal entry worksheet Record the employee payroll expenses and liabilities for the first weekly pay period of the year. Note: Enter debits before credits Date General Journal Debit Credit Jan 08 Clear entry Record entry View general jourmal 2. Prepare the journal entry to record Regis's (employer) payroll taxes resulting from the January 8 payroll. Regis's merit rating reduces its state unemployment tax rate to 5% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.60%. (Round your answers to 2 declmal pleces.) View transaction list Journal entry worksheet Record the employer's payroll expenses and liabilities for the first weekly pay period of the year. Note: Enter debits before credits. Date General Journal Debit Credit Jan 08

Answer 1

Regis Company's
TAX		Jan8 earning	Tax rate	Tax amount
		subject to tax
FICA-Social securiity		94600	6.20%	5865.2
FICA-Medicare		94600	1.45%	1371.7
FUTA		94600	0.60%	567.6
SUTA		94600	5%	4730
TOTAL Payroll tax expenses				12534.5
Journal entries:
S.no.	Accounts title and explanations				Debit $	Credit $
1	Office Salaries				23760
	Sales salaries				70840
	FICA Social s security tax payable					5865.2
	FICA Medicare tax payable					1371.7
	Federal Tax Payable					12760
	Medical Insurance payable					1350
	Union Dues payable					880
	Salaries and wages payable					72373.1
2	Payroll Tax expenses				12534.5
	FICA Social s security tax payable					5865.2
	FICA Medicare tax payable					1371.7
	Federal Unemployment tax Payable					567.6
	State Unemployment tax payable					4730