Payroll Tax Entries

Payroll Tax Entries – The payroll of Delaney Company for September 2012 is as followers: Total payroll was $480,000, of which $140,000 is exempt from Social Security tax because it represented amounts paid in excess of $106,800 to certain employees. The amount paid to employees in excess $7,00 was $410,000. Income taxes in the amount of $80,000 were withheld, as was $9,000 in union dues. The state unemployment tax is 3.5% but Delaney Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee’s wages to $106,800 and 1.45% in excess of $106,800. No employee for Delaney makes more than $125,000. The federal enemployment tax rate is 0.8% after the state credit

Payroll Tax Entries