Answer:
the journal entry should be:
Dr Salaries expense 70,000
Cr FICA - Social security taxes payable 4,200
Cr FICA - Medicare taxes payable 1,050
Cr Employee federal income taxes withheld payable 15,350
Cr Retirement saving withheld from employees payable 2,800
Cr Salaries payable 46,600
Explanation:
If the company was to journalize their payroll taxes expense:
Dr Payroll tax expense 5,250 + (depends on FUTA and SUTA taxes)
Cr FICA - Social security taxes payable 4,200
Cr FICA - Medicare taxes payable 1,050
Cr State unemployment taxes (SUTA) payable (varies depending on salaries)
Cr Federal unemployment taxes (FUTA) payable (varies depending on salaries)
