Reference no: EM132179729
Question - Great Lakes Tutoring had the following payroll information on February 28:
Employee Gross Pay
Cumulative Earnings Prior to This Payroll
R. Hill $4,000 $4,000
Assume: FICA tax rates are OASDI 6.2% on a limit of $106,800, and Medicare is 1.45%.
The state unemployment tax rate is 2% on the first $7,000.
The federal unemployment tax rate is 0.8% on the first $7,000.
Using the information above, the journal entry to record the payroll tax expense for Great Lakes Tutoring would include.
A. a debit to Payroll Tax Expense in the amount of $390.
B. a credit to FUTA Payable for $24.
C. a credit to SUTA Payable for $60.
D. All of the above