The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $540,000; Office salaries, $108,000; Federal income taxes withheld, $162,000; State income taxes withheld, $36,000; Social security taxes withheld, $40,176; Medicare taxes withheld, $9,396; Medical insurance premiums, $13,000; Life insurance premiums, $10,000; Union dues deducted, $7,000; and Salaries subject to unemployment taxes, $62,000. The employee pays forty percent of medical and life insurance premiums. 1&2. Using the above information, complete the below table.
Prepare the journal entries to record accrued payroll and a cash payment of the net payroll for July.
Assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%.
3&4. Using the above information, complete the below table.
TaxAmounts subject to taxtax ratetax amount
Record the accrued employer payroll taxes and all other employer-paid expenses and the cash payment of all liabilities for July-assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%