Tavella Company s first weekly pay period of the year ends

Tavella Company s first weekly pay period of the year ends

Tavella Company's first weekly pay period of the year ends on January 8. On that date, the
column totals in Tavella's payroll register indicate its sales employees earned $34,745, its office
employees earned $21,225, and its delivery employees earned $1,030 in salaries. The
employees are to have withheld from their salaries FICA Social Security taxes at the rate of
6.2%, FICA Medicare taxes at the rate of 1.45%, $8,625 of federal income taxes, $1,160 of
medical insurance deductions, and $138 of union dues. No employee earned more than $7,000
in the first pay period.
Required
1. Calculate FICA Social Security taxes payable and FICA Medicare taxes payable. Prepare the
journal entry to record Tavella Company's January 8 (employee) payroll expenses and liabilities.
(Round amounts to cents.)
2. Prepare the journal entry to record Tavella's (employer) payroll taxes resulting from the
January 8 payroll. Tavella's merit rating reduces its state unemployment tax rate to 3.4% of the
first $7,000 paid each employee. The federal unemployment tax rate is 0.6%. (Round amounts
to cents.)

Tavella Company s first weekly pay period of the year ends

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