Hiatt Company had the following payroll data for the year:

Gross earnings of employees $640,000
Employee earnings not subject to FICA tax 140,000
Employee earnings not subject to FUTA or SUTA tax 490,000

Assuming the following:
FICA tax rate 8%
State Unemployment tax rate 5.4% (SUTA)
Federal Unemployment tax rate .8% (FUTA)

Instructions
Compute Hiatt's payroll tax expense for the year. Make a summary journal entry to record the payroll tax expense.

Hi, Rhody44!

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Thanks!

I think I am missing something... here is my attempt --
Debit Payroll Tax Expense $49,300
Creidt FICA $40,000
Credit FUTA $1,200
Credit SUTA$8,100

Rhody:

You are missing the point!

We do not answer homework problems on this forum; it defeats the purpose of going to school (which is to LEARN).

Study hard and work it out yourself. If you go into tax work in real life, you will expected to know HOW to answer these type of problems.