The payroll of Flint Company for September 2019 is as follows. Total payroll was $444,000,...
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Accounting
The payroll of Flint Company for September 2019 is as follows. Total payroll was $444,000, of which $100,000 is exempt from Social Security tax because it represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both federal and state unemployment tax) was $404,000. Income taxes in the amount of $87,100 were withheld, as was $9,500 in union dues. The state unemployment tax is 3.5%, but Flint 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 employees wages to $128,400 and 1.45% in excess of $128,400. No employee for Flint makes more than $135,000. The federal unemployment tax rate is 0.8% after state credit. Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts .Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation | Debit | Credit |
---|---|---|
enter an account title to record wages and salaries paid | enter a debit amount | enter a credit amount |
enter an account title to record wages and salaries paid | enter a debit amount | enter a credit amount |
enter an account title to record wages and salaries paid | enter a debit amount | enter a credit amount |
enter an account title to record wages and salaries paid | enter a debit amount | enter a credit amount |
enter an account title to record wages and salaries paid | enter a debit amount | enter a credit amount |
(To record wages and salaries paid) | ||
enter an account title to record employer payroll taxes | enter a debit amount | enter a credit amount |
enter an account title to record employer payroll taxes | enter a debit amount | enter a credit amount |
enter an account title to record employer payroll taxes | enter a debit amount | enter a credit amount |
enter an account title to record employer payroll taxes | enter a debit amount | enter a credit amount |
(To record employer payroll taxes) |
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