The payroll tax expense and the suta taxes payable

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The Payroll Tax Expense and the SUTA Taxes payable.

The payroll of YellowCard Company for September 2013 is as follows.

Total payroll was $464,800, of which $133,900 is exempt from Social Security tax because it represented amounts paid in excess of $106,800 to certain employees. The amount paid to employees in excess of $7,000 was $405,700. Income taxes in the amount of $81,270 were withheld, as was $8,690 in union dues. The state unemployment 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 $106,800 and 1.45% in excess of $106,800. No employee for YellowCard makes more than $125,000. The federal unemployment tax rate is 0.8% after state credit.

Prepare the necessary journal entries if (a) the wages and salaries paid and (b) the employer payroll taxes are recorded separately. (Round answers to 0 decimal places

Reference no: EM13681147

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