Barbara Muller Services (BMS) pays its employees monthly. The payroll information listed below is for January 2013, the first month of BMS's fiscal year. The journal entry to record payroll for the January 2013 pay period will include a debit to payroll tax expense of:

Question

Barbara Muller Services (BMS) pays its employees monthly. The payroll information listed below is for January 2013, the first month of BMS's fiscal year.  The journal entry to record payroll for the January 2013 pay period will include a debit to payroll tax expense of:

Quizplus · Accepted Answer

The payroll tax expense includes both Social Security and Medicare taxes. The total amount of payroll taxes for the January 2013 pay period is $11,080 ($6,240 + $4,840). Therefore, the journal entry to record payroll for the month will include a debit to payroll tax expense for $11,080.

Barbara Muller Services (BMS) Pays Its Employees Monthly