Calculating and Journalizing Payroll Tax Expense

The video tutorial explains how to calculate and record payroll tax expenses from the employer's perspective. It covers FICA taxes, including Social Security and Medicare, and unemployment taxes like SUTA and FUTA. The tutorial provides detailed calculations and demonstrates how to make corresponding journal entries. It concludes with a brief overview of potential additional employer contributions, setting the stage for future discussions.

What are the two types of FICA taxes that employers must match for their employees?

• FICA Social Security and FUTA

• FICA Social Security and FICA Medicare

• FICA Medicare and FUTA

• FICA Medicare and SUTA

Which tax is capped at a maximum taxable income of $7,000?

• FUTA

• FICA Social Security

• FICA Medicare

• SUTA

What is the percentage rate used to calculate FUTA tax?

• 5.4%

• 0.6%

• 6.2%

• 1.45%

What is the total payroll tax expense calculated for Ms. Cruise?

• $1,200

• $1,000

• $1,032

• $1,050

In the journal entry for payroll tax expenses, which account is debited?

• SUTA Payable

• FICA Medicare Tax Payable

• FICA Social Security Tax Payable

• Payroll Tax Expense