The following totals for the month of April were taken from the payroll register of Asplend Company. $$\begin{array}{ll}
\text {salaries and wages }&\$72,000\
\text { FICA taxes withheld}&5,508\
\text { income taxes withheld}&15,000\
\text {medical insurance deductions }&2,700
\end{array}$$
The entry to record the payment of net payroll would include a

Question

The following totals for the month of April were taken from the payroll register of Asplend Company. $$\begin{array}{ll}
\text {salaries and wages }&\$72,000\
\text { FICA taxes withheld}&5,508\
\text { income taxes withheld}&15,000\
\text {medical insurance deductions }&2,700
\end{array}$$
 The entry to record the payment of net payroll would include a

Quizplus · Accepted Answer

The entry to record the payment of net payroll would include a debit to Salaries and Wages Payable for the total gross payroll amount of $51,600 ($12,000 + 10,200 + 7,800 + 9,900 + 11,700). Then, we would credit Employee Income Tax Payable for $3,696 ($12,000 x 0.3072), Social Security Tax Payable for $3,175.20 ($49,500 x 0.062), Medicare Tax Payable for $741 ($49,500 x 0.015) and Salaries and Wages Payable for the total deductions amount of $7,612.20 ($3,696 + $3,175.20 + $741). The resulting amount to be paid out to employees (net pay) is $43,287.80 ($51,600 - $7,612.20). Therefore, we would credit Cash for the net amount of $43,287.80 when we actually pay out the employees.

The Following Totals for the Month of April Were Taken