The payroll register of Cliff’s Auto Detailers showed total employee earnings of $4,000 for the week ended April 8, 2016.

INSTRUCTIONS

1. Compute the employer’s payroll taxes for the period. The tax rates are as follows:

Social security.....6.2 percent

Medicare .......1.45

FUTA........ 0.6

SUTA........ 2.2

2. Prepare a general journal entry to record the employer’s payroll taxes for the period. Use journal page 28.

Analyze: If the FUTA tax rate had been 1.2 percent, what total employer payroll taxes would have been recorded?