Lawrence, an employee of Light Inc., has a gross salary for March of $4,000. The entire amount is under the OASDI limit of $117,000, and thus subject to FICA. His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA. Provide the journal entry to record the employer's payroll taxes. (Assume a FICA—OASDI Tax of 6.2% and FICA—Medicare Tax of 1.45%.)

Answer rating: 100% (QA)

A C D 1 General Journal Debit Credit 2 Payroll Tax Expenses 306 FICA OASDI Tax P... View the full answer