What could be the journal entry for the scenario

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Reference no: EM132796720

In 2017, D Company's final payroll for their staff was $1,893,200. None of the employer payroll taxes or with the holding or actual payment to the employees have been recorded for this payroll. HR reports that $245,000 of the payroll was paid to employees who were over the $108,600 threshold that's taxable by FICA. The FICA tax rates are 7.45% to those below the threshold and 1.45 % to those above the threshold. In addition, $1,200,000 of this payroll was paid to employees above the $23,000 unemployment tax threshold. The federal rate for those below the threshold was 0.8%. The state unemployment rate is 5.72%.

HR also reported that they witheld $345,000 in federal income tax during the year. The accounting department reported that the company does not maintain wages payable account. Wages are supposed to be recorded on the same day they are paid.

Problem 1: What could be the journal entry for this scenario?

Reference no: EM132796720

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