Explore BrainMass

# Journal entries for Payroll and Payroll Tax

Not what you're looking for? Search our solutions OR ask your own Custom question.

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

The payroll of YellowCard Company for September 2006 is as follows.

Total payroll was \$480,000, of which \$110,000 is exempt fro mSocial Security tax because it represented amounts paid in excess of \$90,000 to certain employees. The amount paid to employees in excess of \$7,000 was \$400,000/ Omcp,e taxes om tje a,pimt pf \$80,000 were withheld, as was \$9,000 in union dues. The state unemployment tax is 3.5%, but YellowCard Company is allowed a credit of 2.3% by the state for it's unemployment experience. Also, assume that the current FICA tax is 7.65% on an employees wages to \$90,000 and 1.45% in excess of \$90,000. No employee for YellowCard makes more than \$125,000. The federal unemployment tax rate is 0.8% after state credit.

Instructions:
Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately. Remit in excel

#### Solution Preview

Wages and Salaries Expense 480,000
Withholding Taxes Payable 80,000
FICA Taxes Payable* 29,900
Union Dues Payable 9,000
Cash 361,100
*[(\$480,000 - ...

#### Solution Summary

The solution explains the journal entries for Payroll and Payroll Tax.

\$2.49