Employees of Mayhem Fabricators,Inc.earned gross wages of $140,000 during a recent two-week period.Employee withholdings and payroll tax percentages are presented below:

Only $78,000 of wages are subject to FICA,and $36,000 are subject to unemployment taxes.
(1)Prepare the entry to record the gross payroll.
(2)Prepare the entry to record employer payroll taxes.

Question

Employees of Mayhem Fabricators,Inc.earned gross wages of $140,000 during a recent two-week period.Employee withholdings and payroll tax percentages are presented below:
  
Only $78,000 of wages are subject to FICA,and $36,000 are subject to unemployment taxes.
(1)Prepare the entry to record the gross payroll.
(2)Prepare the entry to record employer payroll taxes.

Quizplus · Accepted Answer

The Answer of Employees of Mayhem Fabricators,Inc.earned gross wages of $140,000 during a recent two-week period.Employee withholdings and payroll tax percentages are presented below:
  
Only $78,000 of wages are subject to FICA,and $36,000 are subject to unemployment taxes.
(1)Prepare the entry to record the gross payroll.
(2)Prepare the entry to record employer payroll taxes.