Mid-West Tutoring had the following payroll information on January 31:
$$\begin{array} { | c | c | c | }
\hline \text { Employee } & \text { Gross Pay } & \begin{array} { c }
\text { Cumulative Earnings } \
\text { Prior to this Payroll }
\end{array} \
\hline \text { R Baxter } & \$ 6,000 & \$ 6,000 \
\hline
\end{array}$$
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 employee's withholding taxes would include:

Question

Mid-West Tutoring had the following payroll information on January 31:
$$\begin{array} { | c | c | c | } 
\hline \text { Employee } & \text { Gross Pay } & \begin{array} { c } 
\text { Cumulative Earnings } \
\text { Prior to this Payroll }
\end{array} \
\hline \text { R Baxter } & \$ 6,000 & \$ 6,000 \
\hline
\end{array}$$
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 employee's withholding taxes would include:

Quizplus · Accepted Answer

The journal entry to record the employee's withholding taxes would include a debit to Wages and Salaries Expense for the gross pay amount of $6,000. This reflects the total expense incurred by the company for the employee's wages before any deductions.

Mid-West Tutoring Had the Following Payroll Information on January 31