Flip earns a salary of 7500 per month during the year fica

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Flip earns a salary of $7,500 per month during the year. FICA taxes are 8% on the first $100,000 of gross earnings. Federal unemployment insurance taxes are 6.2% of the first $7,000; however, a credit is allowed equal to the state unemployment insurance taxes of 5.4% on the $7,000. During the year, $25,600 was withheld for federal income taxes and $5,700 was withheld for state income taxes.

a. Prepare a journal entry summarizing the payment of Flip's total salary during the year.

b. Prepare a journal entry summarizing the employer payroll tax expense on Flip's salary for the year.

c. Determine the cost of employing Flip for the year. (Salary and Employer payroll taxes)

 

Reference no: EM13569830

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