The entry to record the payroll tax expense would include:
A) a credit to Federal Income Taxes Payable.
B) a debit to Pre-paid Tax Expense.
C) a credit to FICA (OASDI and Medicare) Taxes Payable.
D) a credit to Wages Payable.

Question

Quizplus · Accepted Answer

The payroll tax expense entry includes a credit to FICA Taxes Payable, as it represents the employer's liability for Social Security and Medicare taxes.

The Entry to Record the Payroll Tax Expense Would Include