Payroll entries
Widmer Company had gross wages of $240,000 during the week ended June 17. The amount of wages subject to social security tax was $240,000, while the amount of wages subject to federal and state unemployment taxes was $35,000. Tax rates are as follows:
|
Social security
|
6.0%
|
|
Medicare
|
1.5%
|
|
State unemployment
|
5.4%
|
|
Federal unemployment
|
0.8%
|
The total amount withheld from employee wages for federal taxes was $48,000.
a. Journalize the entry to record the payroll for the week of June 17.
b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.