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Question
According to a summary of the payroll of Sinclair Company, $505,000 was subject to the 6.0% social security tax and $545,000 was subject to the 1.5% Medicare tax. Also, $10,000 was subject to state and federal unemployment taxes.
a. Compute the employer’s payroll taxes using the following rates: State unemployment, 4.2%; Federal unemployment, 0.8%.
b. Journalize the entry for the employer's payroll tax expense.
Answer
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