Dan Jones and Pat Smith are two employees of Lone Star Company.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 Company for January?
A) a debit to Salaries Payable to employees for $390.05
B) a debit to FICA-OASDI Taxes Payable for $390.05
C) a credit to FICA-Medicare Taxes Payable for $390.05
D) a credit to Salaries Expense for $390.05

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