Dan Jones and Pat Smith are two employees of Lone Star, Inc. In January 2019, Dan's gross pay was $11,500, and Pat's gross pay was $15,400. 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 for both employees is calculated as 1.45% of their combined gross pay, which equals $390.05. This amount is credited to FICA-Medicare Taxes Payable.

Dan Jones and Pat Smith Are Two Employees of Lone