The employees of Portonegra Company earn wages of $15,600 for the two weeks ending April 19. FIT taxes of $424 were withheld. The entire amount of wages is subject to the FICA taxes, but only $10,800 is taxable under the federal and state unemployment compensation laws. The state contribution rate of the employer is 3.9%. All employees are subject to state unemployment contributions of 0.5% on the April 19 taxable wages of $10,800, and the employees' contributions are to be deducted by the employer. Journalize the payment of the wages, and record the payroll taxes, assuming that the contributions of the employer and the employees are recorded in one account, SUTA TaxesPayable.
Answer to relevant QuestionsHow are the fund used which are provided by FUTA and SUTA?Explain the concept of vesting.What personnel records would you suggest for a small retailer with three employees?The following information pertains to the payroll of Fanelli Fashion Company on June 7:a. The total wages earned by employees are $2,910.b. The state unemployment insurance contribution rate is 3.75%.c. The entire amount of ...At the end of June, Morton Company had a balance of $49,900 in the vacation benefits payable account. During July, employees earned an additional $3,110 in vacation benefits, but some employees used vacation days that ...
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