Calculate fica social security taxes payable

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Reference no: EM131068513

On January 8, the end of the first weekly pay period of the year. Royal Company's payroll register showed that its employees earned $27,760 of office salaries and $60,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.20%, FICA Medicare taxes at the rate of 1.45%, $12,860 of federal income taxes, $1,390 of medical insurance deductions, and $920 of union dues.

No employee earned more than $7,000 in this first period.

Required:

1.1 Calculate FICA Social Security taxes payable and FICA Medicare taxes payable by the employees of Royal Company.(Round your answers to 2 decimal places Omit the "tiny_mce_markerquot; sign in your response.)

1.2 Prepare the journal entry to record Royal Company's January 8 (employee) payroll expenses and liabilities. (Round your answers to 2 decimal places Omit the "tiny_mce_markerquot; sign in your response.)

2. Prepare the journal entry to record Royal's (employer) payroll taxes resulting from the January 8 payroll. Royal's merit rating reduces its state unemployment tax rate to 4% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.8%. (Round your answers to 2 decimal places. Omit the "' sign in your response.)

Reference no: EM131068513

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