The following totals for the month of April were taken from the payroll register of Asplend Company. $$\begin{array} { l r }
\text { Salaries and wages } & \$ 72,000 \
\text { FlCA taxes withheld } & 5,508 \
\text { Income taxes withheld } & 15,000 \
\text { Medical insurance deductions } & 2,700 \
\text { Federal unemployment taxes } & 192 \
\text { State unemployment taxes } & 1,296
\end{array}$$ The entry to record accrual of Asplend Company's payroll taxes would include a

Question

The following totals for the month of April were taken from the payroll register of Asplend Company. $$\begin{array} { l r } 
\text { Salaries and wages } & \$ 72,000 \
\text { FlCA taxes withheld } & 5,508 \
\text { Income taxes withheld } & 15,000 \
\text { Medical insurance deductions } & 2,700 \
\text { Federal unemployment taxes } & 192 \
\text { State unemployment taxes } & 1,296
\end{array}$$ The entry to record accrual of Asplend Company's payroll taxes would include a

Quizplus · Accepted Answer

Payroll taxes include FICA taxes, federal and state unemployment taxes, and any other applicable state and local taxes. The total amount of payroll taxes for April is $6996 ($4416 + $1620 + $960), which is the amount that should be debited to Payroll Tax Expense. The corresponding credit should be to FICA Taxes Payable since FICA taxes are a type of payroll tax. Therefore, the correct answer is B.

The Following Totals for the Month of April Were Taken