Journal entry to record the employers payroll tax liability

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Alpha Company has a January 15 mid-month gross salaries expense of $25,000. All is subject to FICA Social Security (6.2%), FICA Medicare (1.45%), state income tax (5%) and federal income tax (15%) withholdings. Additionally, all is subject to employer taxes to include FUTA (0.8%) and SUTA (5.4%) taxes. (Round all calculations to the nearest penny.)

Required:

a. Prepare the general journal entry to record the employer's payroll liability.

b. Prepare the general journal entry to record the employer's payroll tax liability.

c. Prepare the general journal entry to liquidate the liabilities accrued in parts (a) and (b) on January 22.

Reference no: EM131286648

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