Dan Jones and Pat Smith are two employees of Lone Star, Inc In January 2017, Dan's gross pay was $11,500, and Pat's gross pay was $15,400
All earnings are subject to FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%. Which of the following would be included in the entry to record the payroll tax expense to be paid out by Lone Star, Inc for January?
A) a debit to Salaries Payable to employees for $390.05
B) a debit to FICA-OASDI Taxes Payable for $390.05
C) a credit to FICA-Medicare Taxes Payable for $390.05
D) a credit to Salaries Expense for $390.05
C .Dan's Salary $11,500.00
Pat's Salary 15,400.00
Total Salary $26,900.00
Credit to FICA-Medicare Taxes Payable ($26,900 x 1.45%) $390.05
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