Employees of Harding Fabricators, Inc

Subject:AccountingPrice:2.87 Bought7

Share With

Employees of Harding Fabricators, Inc. earned gross wages of $140,000 during a recent two- week period. Employee withholdings and payroll tax percentages are presented below:

 

Federal withholding ...................................	$33,000
Hospital insurance premiums ...........................	3,050
FICA ..................................................	7.5%
State unemployment ....................................	2.0%
Federal unemployment ..................................	0.8%

Only $78,000 of wages are subject to FICA, and $36,000 are subject to unemployment taxes.

 

1. 1. Prepare the entry to record the gross payroll.
   2. Prepare the entry to record employer payroll taxes.