Selected information from the payroll register of Raynette's Boutique for the week ended September 14, 20--, is

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Selected information from the payroll register of Raynette's Boutique for the week ended September 14, 20--, is as follows. Social Security tax is 6.2% on the first $106,800 of earnings for each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is 0.8% and SUTA tax is 5.4% on the first $7,000 of earnings.


Taxable Earnings Cumulative Pay Before Current Unemployment Social Current Gross Pay Compensation Security $1,250 1,100


Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes, and prepare the journal entry to record the employer's payroll taxes as of September 14,20--.

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College Accounting

ISBN: 978-0538745192

20th Edition

Authors: Heintz and Parry

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