Prepare the entry to record payroll liability

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Question - For the first payroll in November, the records on Nans Company show direct labor Rs. 20,000; indirect factory labor Rs. 4000; sales salaries Rs. 5000 and administrative office salaries Rs. 3600. The FICA tax rate is 7.5% and UCI tax 2.5%. State and federal income taxes withheld are Rs. 3000. And the city wage tax is 1% on employee gross earning and it is paid by the employees.

Required - Prepare the entry to record payroll liability, distribute the payroll cost and employer payroll taxes, treated as indirect cost. The state UCI tax rate is 3%. And FUTA tax rate is 0.8% and FICA tax rate is 7.5%.

Reference no: EM132745607

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