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Business, 27.04.2021 15:20 croxy0514

Scott Company has 5 sales employees, each of whom earns $16,000 per month and is paid on the last working day of the month. Each employee's wages are subject to FICA social security taxes of 6.2% and Medicare taxes of 1.45% on all wages. Withholding for each employee also includes federal income tax of 16% and monthly medical insurance premiums of $440 for each employee. Metro Express also pays federal unemployment taxes of 0.8% of the first $7,000 paid each employee, and state unemployment taxes of 4.0% of the first $7,000 paid to each employee. Required:
Prepare the journal entries to record (1) the employee’s wages and payroll taxes at January 31, (2) the employer’s payroll taxes at January 31, and (3) payment of the employer’s payroll tax liabilities at January 31 for Metro Express. Metro Express deposits taxes monthly.

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