Stockbridge Stores, Inc., has three employees, Frank Wall, Mary Jones, and Susan Wright. Summaries of their 2003 salaries and withholdings are as follows:
|
Employee |
Gross Salaries |
Federal Income Taxes Withheld |
State Income Taxes Withheld |
FICA Taxes Withheld |
|
Frank Wall |
$54,000 |
$6,500 |
2,500 |
4,131 |
|
Mary Jones |
39,000 |
$4,800 |
$1,900 |
2,984 |
|
Susan Wright |
34,000 |
4,250 |
1,500 |
$2,601 |
1. Prepare the summary entry for salaries paid to the employees for the year 2003.
2. Assume that, in addition to FICA taxes, the employer has incurred $192 for federal unemployment taxes and $720 for state unemployment taxes. Prepare the summary journal entry to record the payroll tax liability for 2003, assuming no taxes have yet been paid.
3. Interpretive Question: What other types of items are frequently withheld from employees’ paychecks in addition to income taxes and FICA taxes?