Prepare the entry to record the employer payroll taxes

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Reference no: EM131206424

The following information about a company is as follows: • Total payroll was $2,760,000. • $480,000 of the $2,760,000 represented amounts paid in excess of $118,500 to certain employees. • The amount paid to employees in excess of $7,000 was $2,160,000. • Income taxes withheld were $675,000. • The state unemployment tax is 1.2% • The federal unemployment tax is .8% • The F.I.C.A. tax is 7.65% on an employee’s salaries and wages up to and including $118,500 and 1.45% in excess of $118,500. Using the attached T-account template: (a) Prepare the journal entry for the salaries and wages paid. (b) Prepare the entry to record the employer payroll taxes. Label the entries “a” or “b”

Reference no: EM131206424

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