The following totals for the month of March were taken from the payroll records of Kern Company. Salaries $54,000
FICA taxes withheld 4,131
Income taxes withheld 11,880
Medical insurance deductions 783
Federal unemployment taxes 432
State unemployment taxes 2,700
The entry to record accrual of employer's payroll taxes would include a
A) debit to Payroll Tax Expense for $7,263
B) debit to Payroll Tax Expense for $19,143
C) credit to FICA Taxes Payable for $4,131.
D) credit to Payroll Tax Expense for $7,263.

Question

Quizplus · Accepted Answer

The employer's payroll taxes include FICA taxes, federal unemployment taxes, and state unemployment taxes. The total is $4,131 + $432 + $2,700 = $7,263, which is debited to Payroll Tax Expense.

The Following Totals for the Month of March Were Taken