The payment of the FUTA tax and the FICA taxes by the employer to the IRS is recorded in the same journal entry.

Name: The payment of the FUTA tax and the FICA taxes by the employer to the IRS is recorded in the same journal entry.
Brand: Quizplus
Rating: 4.9 (59 reviews)

Question

Quizplus · Accepted Answer

FUTA (Federal Unemployment Tax Act) tax and FICA (Federal Insurance Contributions Act) taxes are related to different liabilities and purposes, and they are typically recorded in separate journal entries to accurately reflect their distinct nature in financial records.

The Payment of the FUTA Tax and the FICA Taxes