Lopez Company has a single employee, who earns a salary of $192,000 per year. That employee is
Question:
Lopez Company has a single employee, who earns a salary of $192,000 per year. That employee is paid on the 15th and last day of each month. On January 15, Lopez is subject to the following payroll taxes: FICA-Social Security Taxes (at 6.2% of the first $117,000 each employee earns in the calendar year), FICA-Medicare Taxes (at 1.45%), FUTA (at 0.8% of the first $7,000 each employee earns in the calendar year), and SUTA (at 5.4% of the first $7,000 each employee earns in the calendar year). The journal entry to record the employer's payroll tax expense and related liabilities would include a debit to:
a. Payroll Taxes Expense for $1,108.
b. FICA-Social Security Taxes Payable for $496.
c. Payroll Taxes Expense for $1,046.
d. FICA-Medicare Taxes Payable for $116.
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain