For the biweekly pay period ending on April 10 at Clark’s Pet Store, the following partial payroll summary is taken from the individual employee earnings records. Use it to do the following:
1. Complete the table. Use the federal income tax withholding table in Figure 7.2 to figure the amount of income tax withheld.
2. Prepare a journal entry to record the payroll tax expense for Clark’s.
Please show the calculations for FICA taxes.

Assume that the FICA tax rate for OASDI is 6.2% up to $106,800 in earnings (no one has earned this much as of April 10), and Medicare is 1.45% on all earnings. The state unemployment tax rate is 5.1% on the first $7,000 of earnings, and the federal unemployment tax rate is 0.8% of the first $7,000 of earnings. (Only Dan Tarantino earned more than $7,000 as of April 10.) In cases where the amount of FICA tax calculates to one-half cent, round up to the nextcent.

  • CreatedApril 24, 2014
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