Question: Airline Temporary Services (ATS) pays employees monthly. Payroll information is listed below for January, the first month of ATS's fiscal year. Assume that none of the employees exceeds the federal unemployment tax maximum salary of $7,000 in January
Salaries expense $500,000
Federal and state income tax withheld 100,000
Federal unemployment tax rate 0.80%
State unemployment tax rate (after FUTA deduction) 5.40%
Social Security (FICA) tax rate 7.65%
Required: Record salaries expense and payroll tax expense for the January pay period.