The following totals for the month of April were taken from the payroll records of Metz Company. Salaries $30,000
FICA taxes withheld 2,295
Income taxes withheld 6,600
Medical insurance deductions 1,200
Federal unemployment taxes 240
State unemployment taxes 1,500
The entry to record accrual of employer's payroll taxes would include a
A) debit to Payroll Tax Expense for $4,035.
B) credit to Payroll Tax Expense for $4,035.
C) credit to FICA Taxes Payable for $1,740.
D) credit to Payroll Tax Expense for $1,740.

Question

Quizplus · Accepted Answer

The employer's payroll taxes include FICA taxes (employer's share), federal unemployment taxes, and state unemployment taxes. The total is $2,295 (FICA) + $240 (federal unemployment) + $1,500 (state unemployment) = $4,035. Therefore, the entry would debit Payroll Tax Expense for $4,035.

The Following Totals for the Month of April Were Taken