Processes and pays payroll semimonthly

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Reference no: EM133208344

Vandelay Industries processes and pays payroll semimonthly. The company processed their payroll for the second half of March 2022 using the data shown below. The pay period is for the dates 3/16/22 - 3/31/22, and the paychecks are dated Thursday, 3/31/22.

• Gross payroll for salaries and wages is $375,000

• Federal income tax is withheld at a rate of 15% for all employees

• State income tax is withheld at a rate of 3% for all employees

• Social Security (OASDI) is taxed at 6.2% for EE and ER

• Medicare is taxed at 1.45% for EE and ER

• FUTA is taxed at 0.6%

• SUI is taxed at 3.2%

• No employees have reached the OASDI, FUTA, or SUI taxable wage limits for the year

• 401(k) withholdings are $35,000

• Benefits (i.e., health, dental, vision, etc.) withholdings are $20,000

Prepare two journal entries:

1. The payroll journal entry to record the salaries and wages expense of the company and net pay to employees

2. The journal entry Vandelay should record for ER payroll tax expense.

Reference no: EM133208344

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