During January, a company incurs employee salaries of $1.9 million. Withholdings in January are $145,350 for the employee portion of FICA, $285,000 for federal income tax, $118,750 for state income tax, and $19,000 for the employee portion of health insurance (payable to Company B). The company incurs an additional $117,800 for federal and state unemployment tax and $57,000 for the employer portion of health insurance.

Required:

1. Record the employee salary expense, withholdings, and salaries payable.

2. Record the employer-provided fringe benefits.

3. Record the employer payroll taxes.

Question

Business

Haiden Mcmahon

19 April, 07:46

During January, a company incurs employee salaries of $1.9 million. Withholdings in January are $145,350 for the employee portion of FICA, $285,000 for federal income tax, $118,750 for state income tax, and $19,000 for the employee portion of health insurance (payable to Company B). The company incurs an additional $117,800 for federal and state unemployment tax and $57,000 for the employer portion of health insurance.

Required:

1. Record the employee salary expense, withholdings, and salaries payable.

2. Record the employer-provided fringe benefits.

3. Record the employer payroll taxes.

+2

Answers (1)

Know the Answer?

Paisley Guzman · Answer 1

Check the following information

Explanation:

Debit Salaries Expense $1,900,000

Credit FICA Payable $145,350

Credit Federal Income Tax Withholding Payable $285,000

Credit State Income Tax Withholding Payable $118,750

Credit Health Insurance Payable $19,000

Credit Salaries Payable $1,331,900

Debit Payroll Tax Expense $320,150

Credit FICA Payable $145,350

Credit Unemployment Taxes Payable $117,800

Credit Health Insurance Payable $57,000