Asked by Kwama Kenyatta on Jul 07, 2024
Verified
According to a summary of the payroll of Scotland Company, $450,000 was subject to the 6.0% social security tax and $500,000 was subject to the 1.5% Medicare tax. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (5.4%) and federal (0.8%) unemployment taxes. The journal entry to record accrued payroll taxes would include a
A) debit to SUTA Payable of $810
B) debit to SUTA Payable of $18,900
C) credit to SUTA Payable of $810
D) credit to SUTA Payable of $18,900
SUTA Payable
A liability account in the general ledger that records amounts owed to the state unemployment insurance program, to be paid by employers.
Social Security Tax
A payroll tax paid by employees and employers to fund the Social Security program, which provides retirement, disability, and survivorship benefits.
- Comprehend the functions and computation techniques of payroll taxes, such as SUTA and FUTA.
Verified Answer
GM
Gabrielle MoralesJul 10, 2024
Final Answer :
C
Explanation :
SUTA Payable is credited for the state unemployment tax. The calculation is $15,000 * 5.4% = $810.
Learning Objectives
- Comprehend the functions and computation techniques of payroll taxes, such as SUTA and FUTA.