b$.$ Dr$.$ Payroll Tax Expense, $$61,476$

PR $10-2$A Entries for payroll and payroll taxes

The following information about the weekly payroll was obtained from the records of Boltz Co$.$:

Salaries:

Sales salaries $$540,000$

Warehouse salaries $$155,000$

Office salaries $$85,000$

$$780,000$

Deductions:

Income tax withheld $$160,000$

U$.$S$.$ savings bonds $$10,500$

Group insurance $$9,000$

Tax rates assumed:

Social security, $6\%$

Medicare, $1\mathrm{.}5\%$

State unemployment $($employer only$),5\mathrm{.}4\%$

Federal unemployment $($employer only$),0\mathrm{.}8\%$

Instructions

Assuming that the payroll related to the first full week of the year and was paid on January $7,$journalize the following entries:

a$.$ January $7,$ to record the payroll.

b$.$ January $7,$ to record the employer's payroll taxes on the payroll for the first week of the year. Since it is a new fiscal year, all $$780,000$ in salaries is subject to unemployment compensation taxes.

Assuming that the payroll related to the last week of the year and was paid on December $31,$ journalize the following entries:

a$.$ December $31,$ to record the payroll.

b$.$ December $31,$ to record the employer's payroll taxes on the payroll for the last week of the year. Of the total payroll for the last week of the year, $$48,000$ is subject to unemployment

compensation taxes.