All wages paid were subject to FICA. FICA tax rates were 7% each for employee and employer. In InterSlice’s jurisdiction employers must also pay unemployment taxes under FUTA at a 2% rate. InterSlice remits taxes on the 15th of the following month. As a result of March year 8 wages, what amounts should InterSlice record in its journal entry for March payroll tax liability and March withholdings due to IRS?

Payroll tax expense is $1,080 and Withholdings due to IRS is $2,280

Explanation:

InterSlice Co.'s payroll for the month ended March year 8, is summarized as follows:

Total wages

$12,000

Federal income tax withheld

1,440

All wages paid were subject to FICA. FICA tax rates were 7% each for employee and employer. In InterSlice's jurisdiction employers must also pay unemployment taxes under FUTA at a 2% rate. InterSlice remits taxes on the 15th of the following month. As a result of March  year 8 wages, what amounts should InterSlice record in its journal entry for March payroll tax expense and March withholdings due to IRS?

The payroll of an employer tax expense includes all the taxes the employer is required to pay based on its payroll. This taxes would include FICA at 7% and FUTA at 2% thereby making a total of 9% (2% + 7%) of $12,000 in wages.

Withholding's due to the IRS are taxes paid by employees as a result of employers withholding the taxes from the employees wages and paying it to the taxing authority. This includes fedral income taxes withheld of $1,440 and the employees' FICA, which is 7% of $12,000

Payroll tax = 12000 × 9% = 12000 × 0.09 = 1080

Payroll tax = $1080

Withholding due to IRS = 1440 + (12000 x 0.07) = 2280

Withholding due to IRS = $2280

Reasoning

Payroll exp you only own the portion that you pay for

Withholding due to IRS Liability is because you own them what you have taken out of the checks to your workers, and the amount your going to take out of their checks.

i mean, there is a lot of homeless people. but it is a very busy place and always in need for people who can be busy so it's not impossible to find one.

if i need to borrow money for anything, it would be for something like a house or an apartment but, that depend on the situation.

is this good enough?