Calculate fica social security taxes payable

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Reference no: EM13509383

On January 8, the end of the first weekly pay period of the year, Royal Company's payroll register showed that its employees earned $11380 of office salaries and $32920 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $6,340 of federal income taxes, $670 of medical insurance deductions, and $420 of union dues. No employee earned more than $7000 in this first period.

1.Calculate FICA Social Security taxes payable and FICA Medica taxes payable. Prepare the journal entry to record Royal Company's January 8 (employee) payroll expenses and liabilities.

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 $7000 paid each employee. The federal unemployment tax rate is 0.8%

Reference no: EM13509383

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