Solution-Make the entry to record the payroll tax expenses

Make the entry to record the payroll tax expenses

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Reference no: EM132642280

Question - Below is a payroll sheet for Mahogany Company for the month of September. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $128,400. In addition, 1.45% is charged both employer and employee for an employee's wages in excess of $128,400 per employee. Round to two decimal places.

Required -

(a) Complete the payroll sheet and make the necessary entry to record the payment of the payroll.

(b) Make the entry to record the payroll tax expenses of Mahogany Company.

Reference no: EM132642280

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Make the entry to record the payroll tax expenses

Reference no: EM132642280

Reference no: EM132642280

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