3. Tesla, Inc. pays employees at the end of each month. Payroll information is listed below for January, the first month of the fiscal year. Assume that none of the employees exceeds the Federal unemployment tax maximum salary of $7,000 in January. Salaries $985,000 Federal and state income taxes withheld 184,000 Federal unemployment tax rate 0.80% State unemployment tax rate (after FUTA deduction) 3.00%

College Accounting (Book Only): A Career Approach
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Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 4E
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3. Tesla, Inc. pays employees at the end of each month. Payroll information is listed below for
January, the first month of the fiscal year. Assume that none of the employees exceeds the Federal
unemployment tax maximum salary of $7,000 in January.
Salaries
$985,000
Federal and state income taxes withheld
184,000
Federal unemployment tax rate
0.80%
State unemployment tax rate (after FUTA deduction)
3.00%
Social Security (FICA) tax rate
7.65%
Record employees salaries expense and payroll tax expense for the January pay period.
Account Name
Debit
Credit
Employees Salaries exp.
[no1]
[no1]
[no1]
Employer Payroll tax
[no1]
[no1]
[no1]
Transcribed Image Text:3. Tesla, Inc. pays employees at the end of each month. Payroll information is listed below for January, the first month of the fiscal year. Assume that none of the employees exceeds the Federal unemployment tax maximum salary of $7,000 in January. Salaries $985,000 Federal and state income taxes withheld 184,000 Federal unemployment tax rate 0.80% State unemployment tax rate (after FUTA deduction) 3.00% Social Security (FICA) tax rate 7.65% Record employees salaries expense and payroll tax expense for the January pay period. Account Name Debit Credit Employees Salaries exp. [no1] [no1] [no1] Employer Payroll tax [no1] [no1] [no1]
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