Recording the employer’s payroll taxes

Transaction

The January payroll, already recorded, has gross wages of $12,000.00. Record the employer’s payroll taxes on it: FICA 7.65%, federal unemployment tax (FUTA) 0.6% and state unemployment tax (SUTA) 5.4%.

Assumptions: No employee has yet earned more than the FICA, FUTA or SUTA wage base for the year.