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Which of the Following Entries Records an Employer's Payroll Taxes

Question 31

Multiple Choice

Which of the following entries records an employer's payroll taxes?

A) Debit to Payroll Tax Expense, credit to FICA Social Security Tax Payable, credit to FICA Medicare Tax Payable, credit to Federal Unemployment Tax Payable, and credit to State Unemployment Tax Payable
B) Debit to Federal Unemployment Tax (FUTA) Payable, Debit to State Unemployment Tax (SUTA) Payable, and credit to Payroll Tax Expense
C) Debit to Payroll Tax Payable, credit to Cash, credit to Federal Unemployment Tax Payable, and credit to State Unemployment Tax Payable
D) Debit to Federal Expense, credit to Cash

Correct Answer: