MRI Co. has one employee, and the company is subject to the following taxes:?

Question

Using the data in situation a of Exercise 11-6, prepare the employer’s September 30 journal entries to record (1) salary expense and its related payroll liabilities for this employee and (2) the employer’s payroll taxes expense and its related liabilities. The employee’s federal income taxes withheld by the employer are $135 for this pay period.

Tax Rate Applied To

FICA—Social Security . . . . . . . 6.20% First $87,000

FICA—Medicare . . . . . . . . . . . 1.45 All gross pay

FUTA . . . . . . . . . . . . . . . . . . . 0.80 First $7,000

SUTA . . . . . . . . . . . . . . . . . . . 2.90 First $7,000

Gross Pay Gross

through Pay through

August for September

a. $ 6,400 $ 800

b. 18,200 2,100

c. 82,000 8,000

Answer 1

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