Payroll register

Question

The payroll register for Heilman Mfg. for the week of August 20th indicates the following

Salaries $1,500,00

Social Security Tax Withheld $90,000

Medicare Tax Withheld $22,500

Federal Income Taxes Withheld $300,000

In addition, state and federal unemployment taxes were calculated at a rate of 5.4% and 0.8% respectively, on $270,000 of salaries. What would Salaries Payable be for the week of 8/20?

What would Payroll Tax expense be for the same week?

Answer 1

The payroll register for Heilman Mfg. for the week of August 20th indicates the following

Salaries $1,500,00

Social Security Tax Withheld $90,000

Medicare Tax Withheld $22,500

Federal Income Taxes Withheld $300,000

State Unemployment $14,580

Federal Unemployment $2,160

In addition, state and federal unemployment taxes were calculated at a rate of 5.4% and 0.8% respectively, on $270,000 of salaries. What would Salaries Payable be for the week of 8/20?

Salaries payable = 1,500,000-90,000-22,500-300,000=$1,087,500

Payroll withholding consists of Social Security (FICA), Medicare, and Federal tax withholding

What would Payroll Tax expense be for the same week?

Payroll taxes = 90,000+22,500+14,580+2,160=$129,240

Payroll taxes consist of the employer's share of Social Security and Medicare, as well as state and federal unemployment