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Question:
Lee Financial Services pays employees monthly. Payroll information is given below for January 2013, the first month of Lee's fiscal year. Consider that none of the employees exceeded any relevant wage base.
Salaries $500,000
Federal income taxes to be withheld 100,000
Federal unemployment tax rate 0.60%
State unemployment tax rate (after FUTA deduction) 5.40%
Social Security (FICA) tax rate 7.65%
Required:
Write the appropriate journal entries to record wages and salaries expense and payroll tax expense for the January 2013 pay period.
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