Prepare the journal entry to record december payroll

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1. According to a payroll register summary of Ruiz Company, the amount of employees' gross pay in December was $850,000, of which $90,000 was not subject to FICA tax and $750,000 was not subject to state and federal unemployment taxes.

Instructions

(a) Determine the employer's payroll tax expense for the month, using the following rates: FICA 8%, state unemployment 5.4%, federal unemployment 0.8%.

(b) Prepare the journal entry to record December payroll tax expense.

Reference no: EM131129039

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