Dan Jones and Pat Smith are two employees of Lone Star Inc.In January,2012,Dan's gross pay was $5,500 and Pat's gross pay was $5,900.All earnings are subject to FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.Which of the following would be included in the entry to record the payroll tax expense to be paid out by Lone Star Inc.for January?

Question

Quizplus · Accepted Answer

The FICA-Medicare Tax payable is calculated as 1.45% of the total gross pay of both employees, which is $11,400 ($5,500 + $5,900). The tax amount is $165.30, and it is credited to the FICA-Medicare Tax payable account.

Dan Jones and Pat Smith Are Two Employees of Lone