The following totals for the month of April were taken from the payroll register of Magnum Company. Use this information to answer the questions that follow.

Salaries $12,000.

FICA taxes withheld 900

Income taxes withheld 2,500

Medical insurance deductions 450

Federal unemployment taxes 32

State unemployment taxes 216 The entry to record accrual of employer's payroll taxes would include a (A) debit to Payroll Tax Expense for $248 (B) debit to FICA Taxes Payable for $1,800 (C) debit to Payroll Tax Expense for $1,148 (D) credit to Payroll Tax Expense for $248

Question

Amaris Morton

Business

15 September, 04:45

The following totals for the month of April were taken from the payroll register of Magnum Company. Use this information to answer the questions that follow.

Salaries $12,000.

FICA taxes withheld 900

Income taxes withheld 2,500

Medical insurance deductions 450

Federal unemployment taxes 32

State unemployment taxes 216 The entry to record accrual of employer's payroll taxes would include a (A) debit to Payroll Tax Expense for $248 (B) debit to FICA Taxes Payable for $1,800 (C) debit to Payroll Tax Expense for $1,148 (D) credit to Payroll Tax Expense for $248

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Answers (1)

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Owen Santana · Answer 1

(C) debit to Payroll Tax Expense for $1,148

Explanation:

"employer's payroll taxes" This means we are asked for the entry of the employer, not the employee.

The employer will contribute the same amount for FICA (medicare and social security) FUTA and SUTA

so the entry will be:

payroll tax expense debit 1148

FICA taxes payable credit 900

FUTA payable credit 32

SUTA payable credit 216