The entry that includes a debit to Payroll Taxes and Benefits Expense also includes credits to Federal Unemployment Tax Payable and State Unemployment Tax Payable.

Question

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Payroll taxes and benefits expense include federal and state unemployment taxes. The elimination of these taxes is credited to the corresponding accounts, Federal Unemployment Tax Payable and State Unemployment Tax Payable.

The Entry That Includes a Debit to Payroll Taxes and Benefits