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    sai19ful's Avatar
    sai19ful Posts: 1, Reputation: 1
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    #1

    Apr 7, 2013, 05:42 PM
    How to compute employer's payroll taxes expense
    MRI Company has one employee. FICA Social Security taxes are 6.2% of the first $106,800 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For MRI, its FUTA taxes are 0.8% and SUTA taxes are 2.9% of the first $7,000 paid to its employee.

    Gross Pay through August Gross Pay for September
    a. $ 6,640 $ 830


    Prepare the employer’s September 30 journal entries to record the employer’s payroll taxes expense and its related liabilities.
    johnkenry's Avatar
    johnkenry Posts: 1, Reputation: 1
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    Jan 20, 2014, 03:34 AM
    Payroll can be calculated by sum of all financial records of salaries for an employee, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period.From gross pay (the salary paid to the employee) one or more deductions are subtracted, to arrive at Net Pay. Thus the employee's gross pay minus payroll tax deductions, minus voluntary payroll deductions, is equal to Net Pay.
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