Flip earns a salary of 7500 per month during the year fica

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Flip earns a salary of $7,500 per month during the year. FICA taxes are 8% on the first $100,000 of gross earnings. Federal unemployment insurance taxes are 6.2% of the first $7,000; however, a credit is allowed equal to the state unemployment insurance taxes of 5.4% on the $7,000. During the year, $25,600 was withheld for federal income taxes and $5,700 was withheld for state income taxes.

(a) Prepare a journal entry summarizing the payment of Flip's total salary during the year.

(b) Prepare a journal entry summarizing the employer payroll tax expense on Flip's salary for the year.

(c.) Determine the cost of employing Flip for the year in journal entry format.

Reference no: EM13485217

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