On Janusry 8 the end of the first weekly pay period of the y

On Janusry 8, the end of the first weekly pay period of the year, Regis Company\'s payroll register showed that its employees earned $28,780 of office salaries and $80,840 of sales sslaries. Withholdings from the employees\' salaries include FICA Social Security taxes at the rate of 6.20%, FICA Medicare taxes at the rate of 1 45%, $13.460 of federal income taxes, $1.440 of medical insurance deductions, and S800 of union dues. No employee earned more than $7,000 in this first period. Required 1.1 Cslculate below the amounts for each of these four taxes of Regis Company. Regis\'s merit rating reduces its state unemployment tax rate to 4% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.60% (Round your answers to 2 decimal places.) Regis Company\'s January 8 earnings subject to tax Tax Rate Tax Amount FICA-Socisl Security FUTA SUTA 1.2 Prepare the journsl entry to record Regis Company\'s January 8 (employee) payroll expenses and abilites. (Round your answers to 2 decimal places.) 2. Prepare the journal entry to record Regis\'s (employer) payroll taxes resulting from the January payroll. Regis\'s merit rating reduces its state unemployment tax rate to 4% of the first S7.000 paid each employee. The federal unemployment tax rate is 0.60%. (Round your answers to 2 decimal places.)

Solution

Regis Company Total Salary and Wages Paid to employees Office Salaries $              28,760.00 Sales Salaries $              60,840.00 Total Salary and Wages Paid to employees $              89,600.00 Regis Company Tax Earnings Tax Rate Amount FICA Social Security $              89,600.00 6.20% $    5,555.20 FICA Medicare $              89,600.00 1.45% $    1,299.20 FUTA $              89,600.00 0.60% $        537.60 SUTA $              89,600.00 4% $    4,480.00 Journal Entries Date Particular Amount Debit Amount Credit 8-Jan Sales Salaries Expense $              60,840.00 Office Salaries Expense $              28,760.00      Social Security Tax Payable=($89600*6.20%) $             5,555.20       Medicare Tax Payable=($89600*1.45%) $             1,299.20      Employee Federal Income Tax Payable(Given) $           13,460.00     Employee Medical Insurance Payable(Given) $             1,440.00     Employee Union Dues Payable(Given) $                 800.00    Salary Payable=($89600-$5555.20-$1299.20-$13460-$1440-$800) $           67,045.60 2) 8th Jan Payroll taxe Expense $              11,872.00    Social security Tax Payable $             5,555.20    Medicare Tax Payable $             1,299.20     State Unemployment Tax Payable=($89600*.04) $             4,480.00     Fderal Unemployment Tax Payable=($89600*.06%) $                 537.60