Brookhaven Publishing_ Payroll accounting

$4.00

Description

Payroll accounting. Assume that the following tax rates and payroll
information pertain to Brookhaven Publishing:

·
Social Security taxes: 4% on the first $55,000 earned per
employee

·
Medicare taxes: 1.5% on the first $130,000 earned per
employee

·
Federal income taxes withheld from wages: $7,500

·
State income taxes: 4% of gross earnings

·
Insurance withholdings: 1% of gross earnings

·

·
State unemployment taxes: 5.4% on the first $7,000 earned per employee

·
Federal unemployment taxes: 0.8% on the first $7,000earned per employee

The company
incurred a salary expense of $50,000 during February. All
employees had earned less than $5,000 by month-end and no
wages have been paid during the month
.

a.
Prepare the necessary entry
to record Brookhaven’s February payroll. The entry will include deductions
for the following:

·
Social Security taxes

·
Medicare taxes

·
Federal income taxes withheld

·
State income taxes

·
Insurance withholdings

Reviews

There are no reviews yet.

Be the first to review “Brookhaven Publishing_ Payroll accounting”

Your email address will not be published. Required fields are marked *