Problem - JR Corporation's payroll for December, 2015:
Administrative salaries - $16,000
Sales salaries - 32,000
Total payroll - $48,000
Wages subject to FICA taxes (6.2% + 1.45%) - $48,000
Wages subject to FUTA and state unemployment taxes - $12,000
Federal income taxes withheld from all salaries - $ 6,200
The company is required to pay a 2.7% state unemployment tax and a 0.8% federal unemployment tax.
a. Record the journal entry for the payroll.
b. Record the entry for the employer's payroll taxes.