Enable text based alternatives for graph display and drawing entry

Try another version of this question

For all payroll calculations, use the following tax rates and round amounts to the nearest cent.

Employee: OASDI: 5.5% on first $118,000 earned; Medicare: 1.77% up to $300,000, 2.2% on earnings above $300,000.

Employer: OASDI: 5.5% on first $118,000 earned; Medicare: 1.77%; FUTA: 0.8% on first $5,000 earned; SUTA: 5.4% on first $5,000 earned.

Reyes's Mexican Restaurant incurred salaries expense of $60,000 for 2020. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $11,000 is subject to unemployment tax. Also, the company provides the following benefits for employees:

  • health insurance (cost to the company, $2,600)
  • life insurance (cost to the company, $380)
  • and retirement benefits (cost to the company, 8% of salaries expense).

Journalize the employee benefits and payroll taxes for Reyes's Mexican Restaurant.

Journal
DateDescriptionDebitCredit