An employee earns $7,500 in wages and has $1,800 in Federal Income Tax withheld and $318 in State Income tax withheld. In addition, 1.45% for FICA-Medicare and6.2% for FICA-Social Security is withheld. What is the journal entry the employer does to record the payment to the employee?

Question

Blaine

Business

27 October, 05:20

An employee earns $7,500 in wages and has $1,800 in Federal Income Tax withheld and $318 in State Income tax withheld. In addition, 1.45% for FICA-Medicare and6.2% for FICA-Social Security is withheld. What is the journal entry the employer does to record the payment to the employee?

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Answers (1)

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Mya · Answer 1

Answer:The answer is salaries payable $4,808.25

Explanation:

Journal entry will be

Dr: Salaries expense $7,500

Cr: Federal income tax witheld payable $1,800

Cr: State income tax witheld payable $318

Cr : FICA Medicare tax payable ($7,500 * 1.45%) $108.75

Cr: FICA social security payable ($7,500 * 6.2%) $465

Cr: Salaries payable ($7,500 - $1,800 - $318 - $108.75 - $465) $4,808.25

(Being journal entry to record the payroll for the month)