Determine the fica tax withholding percentage


Problem: Other accrued liabilities-payroll. The following summary data for the payroll period ended on November 14, 2003, are available for Brac Construction, Ltd.:

Gross pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ?
FICA tax withholdings . . . . . . . . . . . . . . . . . . . . . .     ?
Income tax withholdings . . . . . . . . . . . . . . . . . . . . 13,760
Medical insurance contributions . . . . . . . . . . . . . .    1,120
Union dues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  640
Total deductions . . . . . . . . . . . . . . . . . . . . . . . . . . 21,640
Net Pay 58,360

Required:

a. Calculate the missing amounts and then determine the FICA tax withholding percentage.

b. Use the horizontal model (or write the journal entry) to show the effects of the payroll accrual.

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Accounting Basics: Determine the fica tax withholding percentage
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