Asked by Emalie Saalsaa on May 01, 2024
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The following totals for the month of June were taken from the payroll register of Young Company:?? Salaries expense $15,000 Social security and Medicare taxes withheld 1,125 Income taxes withheld 3,000 Retirement savings 500 Salaries subject to federal and state unemployment taxes of 6.2%4,000\begin{array} { l r } \text { Salaries expense } & \$ 15,000 \\\text { Social security and Medicare taxes withheld } & 1,125 \\\text { Income taxes withheld } & 3,000 \\\text { Retirement savings } & 500 \\\text { Salaries subject to federal and state } & \\\quad \text { unemployment taxes of } 6.2 \% & 4,000\end{array} Salaries expense Social security and Medicare taxes withheld Income taxes withheld Retirement savings Salaries subject to federal and state unemployment taxes of 6.2%$15,0001,1253,0005004,000 The entry to record the accrual of the employer's payroll taxes would include a debit to
A) Payroll Tax Expense for $2,498
B) Social Security and Medicare Tax Payable for $2,250
C) Payroll Tax Expense for $1,373
D) Payroll Tax Expense for $3,000
Payroll Tax Expense
Payroll Tax Expense represents the taxes that an employer is liable to pay based on the wages and salaries of employees, including social security, Medicare, and unemployment taxes.
Employer's Payroll Taxes
Taxes that employers are responsible for paying on behalf of their employees, including Social Security, Medicare, and unemployment taxes.
Payroll Register
A detailed document that records the earnings, deductions, and net pay for all employees for each pay period.
- Comprehend the components and effects of employer payroll taxes on financial statements.
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Learning Objectives
- Comprehend the components and effects of employer payroll taxes on financial statements.
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