Jefferson Tutoring had the following payroll information on February 28: Assume: FICA tax rates are: OASDI 6.2% on a limit of $128,400 and Medicare 1.45%.
State Unemployment tax rate is 2% on the first $7,000.
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 Jefferson Tutoring would include:
A) a debit to Payroll Tax Expense in the amount of $429.55.
B) a credit to FUTA Payable for $20.00.
C) a credit to SUTA Payable for $50.00.
D) All of the above are correct.

Question

Jefferson Tutoring had the following payroll information on February 28:  Assume: FICA tax rates are: OASDI 6.2% on a limit of $128,400 and Medicare 1.45%.
State Unemployment tax rate is 2% on the first $7,000.
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 Jefferson Tutoring would include:
A) a debit to Payroll Tax Expense in the amount of $429.55. 
B) a credit to FUTA Payable for $20.00. 
C) a credit to SUTA Payable for $50.00. 
D) All of the above are correct.

Quizplus · Accepted Answer

The Answer of Jefferson Tutoring had the following payroll information on February 28:  Assume: FICA tax rates are: OASDI 6.2% on a limit of $128,400 and Medicare 1.45%.
State Unemployment tax rate is 2% on the first $7,000.
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 Jefferson Tutoring would include:
A) a debit to Payroll Tax Expense in the amount of $429.55. 
B) a credit to FUTA Payable for $20.00. 
C) a credit to SUTA Payable for $50.00. 
D) All of the above are correct.

Jefferson Tutoring Had the Following Payroll Information on February 28