Portions of the payroll register for Kathy's Cupcakes for the week ended June 21 are shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.6%, both on the first $7,000 of earnings. The Social Security tax rate is 6.2% on the first $118,500 of earnings. The Medicare rate is 1.45% on gross earnings.

Kathy’s cupcakes payroll Register
	Total Taxable Earnings of All Employees
Total Earnings	Unemployment Compensation	Social Security
$16,660	$12,940	$16,660

1. Calculate the employer's payroll taxes expense.

2. Prepare the journal entry to record the employer's payroll taxes expense for the week ended June 21 of the current year.

Answer rating: 100% (QA)

Date Account title and explanation Debit Credit 21june 2018 Employers payroll t... View the full answer