Brookhaven Publishing_ Payroll accounting
accountguruPayroll accounting. Assume that the following tax rates and payroll information pertain to Brookhaven Publishing:
· Social Security taxes: 4% on the first $55,000 earned per employee
· Medicare taxes: 1.5% on the first $130,000 earned per employee
· Federal income taxes withheld from wages: $7,500
· State income taxes: 4% of gross earnings
· Insurance withholdings: 1% of gross earnings
·
· State unemployment taxes: 5.4% on the first $7,000 earned per employee
· Federal unemployment taxes: 0.8% on the first $7,000 earned per employee
The company incurred a salary expense of $50,000 during February. All employees had earned less than $5,000 by month-end and no wages have been paid during the month.
a. Prepare the necessary entry to record Brookhaven’s February payroll. The entry will include deductions for the following:
· Social Security taxes
· Medicare taxes
· Federal income taxes withheld
· State income taxes
· Insurance withholdings
- 10 years ago
Purchase the answer to view it
- brookhaven_publishing__payroll_accounting.docx