The Salaries Expense journal entry documents the employer's tax burden.
Question: Your lemonade stand has 10 employees that work 40 hours a week and make $15 per hour. Federal income tax is 15%, state income tax is 5%, FICA taxes are 7.65%, and unemployment is 6.2%. Record the total salaries expense.
Total Salary Expense = # of Employees x Hours per Week x Hourly Rate
Total Salary Expense = 10 x 40 x $15
Total Salary Expense = $6,000
|Income Tax Payable||$1,200|
|FICA Tax Payable||$459|