Say that Hambro has a semimonthly payroll of 38,000 on September 15. The total payroll is taxable under FICA taxes HI; $32, 850 is taxable under FICA taxes OASDI; and 9,300 is taxable unders FUTA and SUTA. The sate contribution rate for the company is 3.1%. The amount withheld for fedral income taxes is 5,780. The amount withheld for state income taxes is 809.
How would I jounalize the payment of the wage, and record the payroll taxes on September 15.
Assume that the employees of Hambro, inc, nust also pay state contribution(disability insurance) of 1% on the taxable payroll of 29,300 and that the employee's contribution are to be deducted bt the employer. Journalize the September 15 payment of wages. Asming that the state contributions of the employees are kept in a separate account.