The information on earnings and deductions for the pay period ended December 14 from King Company’s payroll records is as follows:

For each employee, the Social Security tax is 4.2 percent of the first $ 106,800 and the employer’s Social Security tax is 6.2 percent on the same earnings limit. The Medicare tax is 1.45 percent on all earnings. The federal unemployment tax rate is 0.6 percent of the first $ 7,000 of earnings of each employee. The state unemployment tax rate is 5.4 percent of the same base. Determine the total taxable earnings for unemployment, Social Security, and Medicare. Prepare a general journal entry to record the employer’s payrolltaxes.

  • CreatedOctober 21, 2014
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