total earnings $ 200,000
deductions (the only deductiond from the pay are the two listed below)
FICA tax withheld $ 14,300
Ferderal Income tax withheld 50,700
only $65,000 of the wages is subject to the Federal and State unemployment taxes
the Federal unemployment tax is 0.8% (=.008)
the State unemployment tax rate is 3%(=.03)
Required: prepare two separate journal entries
1. compute the net pay; then prepare a journal entry to record the payrolll. The expense account used by this company is Salaries Expense. Use appropriate account titles.
2. prepare a journal entry to record the payroll tax expense.

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Gross pay 200,000
Withholding deductions:
FICA tax 14,300
Federal income tax 50,700
Net pay : 135,000

Prepare Journal entry to record the payroll
Debit Credit
Salary expense 200,000
FICA tax 14,300
Federal Income tax 50,700
Cash(net/take home pay) 135,000

Journal entry to record the payroll tax expense
Debit Credit
Payroll taxes expense 53,170
Fica tax 50,700
Federal unemployment tax 520
State unemployment tax 1,950

You're one of the few who actually reads those guidelines and comes back with your attempts at the problem. We appreciate that.

Do please note that columns don't show when the post goes up. We can only see it if we do a "quote" reply, and even then, it won't show up again when I post. Please put Dr & Cr in front of the line, or use dots to space over or something. I can only see your columns while I'm in this "quote" mode.


Prepare Journal entry to record the payroll
Debit Credit
Salary expense 200,000
FICA tax 14,300
Federal Income tax 50,700
Cash(net/take home pay) 135,000

The concept is there but "FICA tax" and "federal income tax" are not the account names. This was deducted from the employees' checks and will have to be paid to the appropriate government agencies, meaning it's still DUE to be paid to them. What kind of account is it when it's still due?


Journal entry to record the payroll tax expense
Debit Credit
Payroll taxes expense 53,170
Fica tax 50,700
Federal unemployment tax 520
State unemployment tax 1,950

Again, you have to indicate that the taxes are DUE and your account names don't reflect this. (Just looking at them, they could be expenses or whatever.) You also accidentally copied the federal witholding for the FICA - check that. The unemployment calculations are correct.

Can anyone help me with this particular problem?

The payroll register of Seaside Architecture Company indicates $870 of Social Security and $217 of Medicare tax withheld on total salaries of $14,500 for the period. Assume earnings subject to state and federal unemployment compensation taxes are $5,250 at the federal rate of 0.8% and state rate of 5.4%. What are the journal entry to record the payroll tax expense for the period.