Marshall Co.employs a staff of 30 at a total monthly gross pay of $60, 000.The company withholds federal income tax at 20% and state income tax at 3% for all employees.In addition, the following tax rates apply: FICA tax, 7.65%; federal unemployment tax, 0.8%; state unemployment tax, 2.7%.
Required:
a. Prepare the journal entry to record salaries and employee withholding items for the month of January.
b. Prepare the joumal entry to record employer payroll taxes for the month of January.

Question

Marshall Co.employs a staff of 30 at a total monthly gross pay of $60, 000.The company withholds federal income tax at 20% and state income tax at 3% for all employees.In addition, the following tax rates apply: FICA tax, 7.65%; federal unemployment tax, 0.8%; state unemployment tax, 2.7%.
Required:
 a. Prepare the journal entry to record salaries and employee withholding items for the month of January.
b. Prepare the joumal entry to record employer payroll taxes for the month of January.

Quizplus · Accepted Answer

The Answer of Marshall Co.employs a staff of 30 at a total monthly gross pay of $60, 000.The company withholds federal income tax at 20% and state income tax at 3% for all employees.In addition, the following tax rates apply: FICA tax, 7.65%; federal unemployment tax, 0.8%; state unemployment tax, 2.7%.
Required:
 a. Prepare the journal entry to record salaries and employee withholding items for the month of January.
b. Prepare the joumal entry to record employer payroll taxes for the month of January.