Excel Products Inc.pays its employees semimonthly.The summary of the payroll for December 31,indicated the following:

Payroll is subject to social security tax of 6% and Medicare tax of 1.5%,with no maximum earnings; $10,000 is subject to state unemployment tax of 4.3% and federal unemployment tax of 0.8%.Prepare the journal entries for payroll tax expense if the employees are paid on December 31 of the current year.

Question

Excel Products Inc.pays its employees semimonthly.The summary of the payroll for December 31,indicated the following:
​
  Payroll is subject to social security tax of 6% and Medicare tax of 1.5%,with no maximum earnings; $10,000 is subject to state unemployment tax of 4.3% and federal unemployment tax of 0.8%.Prepare the journal entries for payroll tax expense if the employees are paid on December 31 of the current year.

Quizplus · Accepted Answer

The Answer of Excel Products Inc.pays its employees semimonthly.The summary of the payroll for December 31,indicated the following:
​
  Payroll is subject to social security tax of 6% and Medicare tax of 1.5%,with no maximum earnings; $10,000 is subject to state unemployment tax of 4.3% and federal unemployment tax of 0.8%.Prepare the journal entries for payroll tax expense if the employees are paid on December 31 of the current year.