Grant,an employee of Fitzgerald,Inc. ,has gross salary for March of $4,000.The entire amount is under the OASDI limit of $117,000,and thus subject to FICA.His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA.Which of the following is a part of the journal entry to record the employer's payroll taxes?
A)credit to Payroll Tax Expense
B)debit to FICA Taxes Payable
C)credit to FICA-Medicare Taxes Payable
D)debit to Cash

Question

Quizplus · Accepted Answer

The employer's payroll taxes include FICA taxes, which consist of both Social Security (OASDI) and Medicare taxes. Since the gross salary is subject to FICA, the employer must record a credit to FICA-Medicare Taxes Payable as part of the payroll tax liabilities.

Grant,an Employee of Fitzgerald,Inc