In January, gross earnings in Lugo Company totaled $80,000. All earnings are subject to 7.65% FICA taxes
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In January, gross earnings in Lugo Company totaled $80,000. All earnings are subject to 7.65% FICA taxes (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages), 5.4% state unemployment taxes, and 0.6% federal unemployment taxes. Prepare the entry to record January payroll tax expense.
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Jan 31 Payroll Tax Expense 10920 FICA Taxes Payable 80000 X ...View the full answer
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Related Book For
College Accounting
ISBN: 1986
1st Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Deanna C. Martin, Jill E. Mitchell
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