Problem - Data for Payroll Problem
1. Gross payroll is $2,000,000
2. Federal withholding is $400,000
3. State withholding is $53,000
4. Social Security Taxes are withheld at 6.2%
5. Medical taxes are withheld at 1.45%
6. The company's medical insurance premium is $42,000. The employee pays 20%.
7. The company's life insurance premium is $9,000. The employee pay 20%.
8. The company has a 401K plan. This period's employee contribution is $84,000.
9. The company matches the 401K contribution dollar for dollar.
10. The federal unemployment rate is .6%
11. The state unemployment rate is 5.4%
Required:
1. Prepare the journal entry to record payroll.
2. Prepare the journal entry to record the employer's payroll taxes.
3. Prepare the journal entry to record fringe benefits.