The following totals for the month of April were taken from the payroll register of Magnum Company:
$\begin{array}{lr}
\text { Sal aries } & \$ 10,000 \
\text { FICA taxes withheld } & 750 \
\text { Income taxes withheld } & 2,000 \
\text { Medical insurance deductions } & 450 \
\text { Unemployment taxes } & 420
\end{array}$
The entry to record accrual of employer's payroll taxes would include a
A) debit to Payroll Tax Expense for $1,170
B) debit to FICA Taxes Payable for $1,500
C)credit to Payroll Tax Expense for $420
D) debit to Payroll Tax Expense for $1,620

Question

The following totals for the month of April were taken from the payroll register of Magnum Company: 
 $\begin{array}{lr}
\text { Sal aries } & \$ 10,000 \
\text { FICA taxes withheld } & 750 \
\text { Income taxes withheld } & 2,000 \
\text { Medical insurance deductions } & 450 \
\text { Unemployment taxes } & 420
\end{array}$ 
The entry to record accrual of employer's payroll taxes would include a
A) debit to Payroll Tax Expense for $1,170
B) debit to FICA Taxes Payable for $1,500
C)credit to Payroll Tax Expense for $420
D) debit to Payroll Tax Expense for $1,620

Quizplus · Accepted Answer

The entry to record the accrual of employer's payroll taxes typically includes the employer's share of FICA taxes, which is equal to the employee's share ($750), and unemployment taxes ($420). Adding these together gives $1,170, which would be debited to Payroll Tax Expense.

The Following Totals for the Month of April Were Taken