On January 8, the end of the first weekly pay period of the year, Regis Company's employees earned $27,760 of office

Question

On January 8, the end of the first weekly pay period of the year, Regis Company's employees earned $27,760 of office salaries and $70,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $13,460 of federal income taxes, $1,440 of medical insurance deductions, and $860 of union dues. No employee earned more than $7,000 in this first period. Required: 1.1 Calculate below the amounts for each of these four taxes of Regis Company. Regis's state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. 1.2 Prepare the journal entry to record Regis Company's January 8 employee payroll expenses and liabilities. 2. Prepare the journal entry to record Regis's employer payroll taxes resulting from the January 8 payroll. Regis's state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment

Help In Homework · Accepted Answer

1.1) Tax January 8 Earnings Tax Rate Tax Amount subject to tax (27760+70840) FICA-Social Security 98,600 6.20% 6113.2 FICA-Medicare 98,600 1.45% 1429.7 FUTA 98,600 0.60% 591.6 SUTA 98,600 5.40% 5324.4 1.2) Date General Journal Debit Credit Jan-08 Office salaries expense 27,760.00 Sales salaries expense 70,840.00 FICA—Social sec. taxes payable 6,113.20 FICA—Medicare taxes payable 1,429.70 Employee fed. inc. taxes payable 13,460.00 Employee medical insurance payable 1,440.00 Employee union dues payable 860 Salaries payable 75,297.10 2) Date General Journal Debit Credit Jan-08 Payroll taxes expense 13,458.90 FICA—Social sec. taxes payable 6,113.20 FICA—Medicare taxes payable 1,429.70 State unemployment taxes payable 5,324.40 Federal unemployment taxes payable 591.6

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On January 8, the end of the first weekly pay period of the year, Regis Company's employees earned $27,760 of office salaries and $70,840 of sales salaries

Expert Solution

Archived Solution

1.1)
Tax	January 8 Earnings	Tax Rate	Tax Amount
Tax	subject to tax (27760+70840)	Tax Rate	Tax Amount
FICA-Social Security	98,600	6.20%	6113.2
FICA-Medicare	98,600	1.45%	1429.7
FUTA	98,600	0.60%	591.6
SUTA	98,600	5.40%	5324.4

1.2)
Date	General Journal	Debit	Credit
Jan-08	Office salaries expense	27,760.00
	Sales salaries expense	70,840.00
	FICA—Social sec. taxes payable		6,113.20
	FICA—Medicare taxes payable		1,429.70
	Employee fed. inc. taxes payable		13,460.00
	Employee medical insurance payable		1,440.00
	Employee union dues payable		860
	Salaries payable		75,297.10

2)
Date	General Journal	Debit	Credit
Jan-08	Payroll taxes expense	13,458.90
	FICA—Social sec. taxes payable		6,113.20
	FICA—Medicare taxes payable		1,429.70
	State unemployment taxes payable		5,324.40
	Federal unemployment taxes payable		591.6