Reference no: EM132542279

Question - XYZ's 3 employees earned a total of $2,000 of wages for the week. XYZ deducted $400 for federal income taxes, $200 for state income taxes $153 for Social Sec and Medicare. The company matches the Social Sec and Medicare tax and pays state unemployment tax of $80 and federal unemployment tax of $20. Calculate the payroll deductions, net pay, and employer taxes for the week and answer the following questions:

Q1. What would be the amount of Total Employee Deductions/Taxes Payable for the week?

$753.

$853.

$1606.

$1247

Q2. What would be the amount of Employer Payroll Taxes?

$753.

$853.

$1606.

$1247.

Q3. What would be the amount of Net Pay?

$753.

$853.

$1606.

$1247.

Q4. What is the entry when the payroll is paid?

Debit Payroll Liabilities (Fed Income Tax Payable, State Income Tax Payable, Soc Sec&Medicare Payable), Credit Salaries & Wages Expense , Credit Cash

Debit Cash, Credit Salaries & Wages Expense

Debit Salaries & Wages Expense, Credit Payroll Liabilities(Fed Income Tax Payable, State Income Tax Payable, Soc Sec&Medicare Payable),,Credit Cash

Debit Employer Payroll Taxes, Credit Employer Payroll Tax Liabilities.