The payroll register of Cliff's Auto Detailers showed total employee earnings of $4,000 for the week ended April 8, 2019.
INSTRUCTIONS
1. Compute the employer's payroll taxes for the period. The tax rates are as follows:
Social security ......................6.2 percent
Medicare ....................................1.45
FUTA .........................................0.6
SUTA .........................................2.2
2. Prepare a general journal entry to record the employer's payroll taxes for the period. Use Journal page 28.
Analyze:
If the SUTA tax rate had been 1.2 percent, what total employer payroll taxes would have been recorded?