Use this information to answer the following question. The following totals for the month of September were taken from the payroll register of Meadors Company:

-The entry to record the accrual of employer's payroll taxes would include a debit to Payroll Taxes and Benefits Expense for
A)$2,496.
B)$1,100.
C)$1,596.
D)$496.

Question

Use this information to answer the following question. The following totals for the month of September were taken from the payroll register of Meadors Company:

-The entry to record the accrual of employer's payroll taxes would include a debit to Payroll Taxes and Benefits Expense for
A)$2,496. 
B)$1,100. 
C)$1,596. 
D)$496.

Quizplus · Accepted Answer

The accrual of employer's payroll taxes can be calculated by adding up the Social Security, Medicare, and federal and state unemployment taxes that are listed in the payroll register.

In this case, the total of those taxes is $1,596 ($975 + $150 + $471). Therefore, the entry to record the accrual of employer's payroll taxes would include a debit to Payroll Taxes and Benefits Expense for $1,596.

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