Jefferson Tutoring had the following payroll information on February 28:
$$\begin{array} { | c | c | c | }
\hline \text { Employee } & \text { Gross Pay } & \begin{array} { c }
\text { Cumulative Earnings } \
\text { Prior to this Payroll }
\end{array} \
\hline \text { R Hitchcock } & \$ 4,000 & \$ 4,000 \
\hline
\end{array}$$
Assume:
FICA tax rates are: OASDI 6.2% on a limit of $117,000 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:

Question

Jefferson Tutoring had the following payroll information on February 28:
$$\begin{array} { | c | c | c | } 
\hline \text { Employee } & \text { Gross Pay } & \begin{array} { c } 
\text { Cumulative Earnings } \
\text { Prior to this Payroll }
\end{array} \
\hline \text { R Hitchcock } & \$ 4,000 & \$ 4,000 \
\hline
\end{array}$$
Assume:
FICA tax rates are: OASDI 6.2% on a limit of $117,000 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:

Quizplus · Accepted Answer

The payroll tax expense includes OASDI ($4,000 * 6.2% = $248), Medicare ($4,000 * 1.45% = $58), FUTA ($3,000 * 0.8% = $24), and SUTA ($3,000 * 2% = $60), totaling $390.

Jefferson Tutoring Had the Following Payroll Information on February 28