The following totals for the month of June were taken from the payroll register of Young Company:?? Salaries expense $ 15 , 000 Social security and Medicare taxes withheld 1 , 125 Income taxes withheld 3 , 000 Retirement savings 500 Salaries subject to federal and state unemployment taxes of 6.2 % 4 , 000 \begin{array} { l r } ext { Salaries expense } & \$ 15,000 \ ext { Social security and Medicare taxes withheld } & 1,125 \ ext { Income taxes withheld } & 3,000 \ ext { Retirement savings } & 500 \ ext { Salaries subject to federal and state } & \\quad ext { unemployment taxes of } 6.2 \% & 4,000\end{array} Salaries expense Social security and Medicare taxes withheld Income taxes withheld Retirement savings Salaries subject to federal and state unemployment taxes of 6.2% $15 , 000 1 , 125 3 , 000 500 4 , 000 The entry to record the accrual of the employer's payroll taxes would include a debit toA) Payroll Tax Expense for $2,498B) Social Security and Medicare Tax Payable for $2,250C) Payroll Tax Expense for $1,373D) Payroll Tax Expense for $3,000

Question

The following totals for the month of June were taken from the payroll register of Young Company:??    Salaries expense  $ 15 , 000  Social security and Medicare taxes withheld  1 , 125  Income taxes withheld  3 , 000  Retirement savings  500  Salaries subject to federal and state   unemployment taxes of  6.2 % 4 , 000 \begin{array} { l r } 	ext { Salaries expense }  &  \$ 15,000 \	ext { Social security and Medicare taxes withheld }  &  1,125 \	ext { Income taxes withheld }  &  3,000 \	ext { Retirement savings }  &  500 \	ext { Salaries subject to federal and state }  &  \\quad 	ext { unemployment taxes of } 6.2 \%  &  4,000\end{array}  Salaries expense   Social security and Medicare taxes withheld   Income taxes withheld   Retirement savings   Salaries subject to federal and state   unemployment taxes of  6.2% ​ $15 , 000 1 , 125 3 , 000 500 4 , 000 ​   The entry to record the accrual of the employer's payroll taxes would include a debit toA)  Payroll Tax Expense for $2,498B)  Social Security and Medicare Tax Payable for $2,250C)  Payroll Tax Expense for $1,373D)  Payroll Tax Expense for $3,000

Chelsea Carter · Accepted Answer

Final Answer : C, Explanation :  The employer's payroll taxes typically include the employer's share of Social Security and Medicare taxes, which are equal to the amounts withheld from employees (in this case, $1,125), and federal and state unemployment taxes. The unemployment taxes are calculated on the $4,000 of salaries subject to these taxes at a rate of 6.2%, which equals $248 ($4,000 * 6.2% = $248). Therefore, the total payroll tax expense for the employer is $1,125 (Social Security and Medicare) + $248 (unemployment taxes) = $1,373.

Definitions

Learning Objectives

Learning Objectives

Related questions