Total payroll was 604800 of which 176400 is exempt from

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Reference no: EM13602580

The payroll of Delaney Company for September 2010 is as follows. Total payroll was $604,800, of which $176,400 is exempt from Social Security tax because it represented amounts paid in excess of $102,000 to certain employees. The amount paid to employees in excess of $7,000 was $516,600. Income taxes in the amount of $100,800 were withheld, as was $11,340 in union dues. The state unemployment tax is 3.5%, but Delaney Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current F.I.C.A. tax is 7.65% on an employee's wages to $102,000 and 1.45% in excess of $102,000. No employee for Delaney makes more than $125,000. 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.

Wages and salaries expense $604,800
Cash 457,329.60
Withholding taxes payable 100,800
FICA taxes payable 35,330.40
Union dues payable 11,340

Payroll tax expense ?
FICA taxes payable 35,330.40
Federal Unemployment Tax Payable ?
State Unemployment Tax Payable ?

Reference no: EM13602580

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