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Question
Townson Company had gross wages of $200,000 during the week ended December 10. The amount of wages subject to federal and state unemployment taxes was $24,000. Assume all wages were subject to FICA taxes. Tax rates are as follows:
| Social security | 6.0% |
| Medicare | 1.5 |
| State unemployment | 5.3 |
| Federal unemployment | 0.8 |
The total amount withheld from employee wages for federal income taxes was $32,000.
a. Journalize the entry for the payroll for the week of December 10.
b. Journalize the entry for the employer’s payroll tax expense for the week of December 10.
Answer
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