Ail Bane
Mar 26, 2007, 06:04 AM
I had a little issue on what to and what not to tax for payroll expenses.
Ero products pays its workers semimonthly and the Dec 31 payroll looked like the following.
Salary Expense $50,000
Federal Income tax withheld $10,000
Of the payroll, $20,000 is required for Social Security which is 6.2 %, $50,000 for medicare (1.45%), $5,000 is subject to unemployment tax at 5.4% and Federal Unemployment (0.8%). $575 was also. $575 was also withheld for union expenses and $3,700 for medical costs.
I'm supposed to do journal entries for the payment of the payroll and the recording of payroll tax expense if the employees are paid on 12/31/06. So far this is what I got. I don't really understand where some of the taxes are supposed to go. Is this right or even close?
Ero products pays its workers semimonthly and the Dec 31 payroll looked like the following.
Salary Expense $50,000
Federal Income tax withheld $10,000
Of the payroll, $20,000 is required for Social Security which is 6.2 %, $50,000 for medicare (1.45%), $5,000 is subject to unemployment tax at 5.4% and Federal Unemployment (0.8%). $575 was also. $575 was also withheld for union expenses and $3,700 for medical costs.
I'm supposed to do journal entries for the payment of the payroll and the recording of payroll tax expense if the employees are paid on 12/31/06. So far this is what I got. I don't really understand where some of the taxes are supposed to go. Is this right or even close?