Prepare the employer payroll taxes

Reference no: EM133500769

Case: The payroll of Buddy, Inc. for May 31 is as follows: The total payroll was $150,000. None of the individual wages was greater than $132,900 (social security maximum threshold for 2019). Income taxes withheld from employees totaled $37,500 and union dues withheld was $4,000. Assume FICA tax is 7.65% on employee's wages (6.2% Social Security & 1.45% Medicare tax). Calculate Unemployment tax - .6% FUTA and 5.4% SUTA taxes. No employees have reached the $7,000 maximum wage threshold.

Question 1: Prepare the necessary journal entries for the wages paid on May 31

Question 2: Prepare the employer payroll taxes.

Reference no: EM133500769

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