Try another version of this question For all payroll calculations, use the following tax rates and round amounts to the nearest cent.
Journalize the employee benefits and payroll taxes for Reyes's Mexican Restaurant.
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:
Date Description Debit Credit Date Description Debit Credit Payroll Tax Expense 12,824 QASDI Tax Payable 3,300 M-Care Tax Payable 1,062 FUTA Payable 88 SUTA Payable 594 Health Ins. Payable 2,600 Life Ins. Payable 380 Retirement Benefits Pay. 4,800