FICA Taxes Payable was credited for $9,000 in the entry when Peltry Company recorded payroll. When Peltry Company records employer's payroll taxes, FICA Taxes Payable should be credited for:

Question

Quizplus · Accepted Answer

FICA taxes are paid equally by both the employee and the employer. Since the employee's portion is $9,000, the employer's portion will also be $9,000, making the total FICA Taxes Payable $18,000, but the employer's entry will credit FICA Taxes Payable for their portion, which is $9,000.

FICA Taxes Payable Was Credited for $9,000 in the Entry