The Worthington Company has accrued payroll costs of $50,000 for the period July 26-30th as follows:
Administrative salaries $5,000
Sales salaries $5,000
Direct labor $30,000
Indirect labor $10,000
Total $50,000
Other information:
(a) The FICA rate is 8% of the first $100,000 of wages. None of the employees has reached the maximum
(b) The company is responsible for state and federal unemployment taxes on the first $8,000 of wages. All of the employees have previously reached this maximum
(c) Payroll taxes are spread all over jobs
What entry would be necessary to accrue payroll taxes for the period of July 26-30th?

Answer rating: 100% (QA)

Solution Payroll Tax ... View the full answer