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E13-6 (L01) (Payroll Tax Entries) The payroll of YellowCard Company for September 2016 is as...

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E13-6 (L01) (Payroll Tax Entries) The payroll of YellowCard Company for September 2016 is as follows. Total payroll was $480,000, of which $110,000 is exempt from Social Security tax because it represented amounts paid in excess of $118,500 to certain employees. The amount paid to employees in excess of $7,000 was $400,000. Income taxes in the amount of $80,000 were withheld, as was $9 000 in union dues. The state unemploy ment tax is 3.5% but Yellowcard Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee's wages to S1 18,500 and 1.45% in excess of $118,500. No employee for Yellow Card makes more than $125,00. 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

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