A company has three employees. Total salaries for the month of January were $8,000. The federal income tax rate for all employees is 15%. The FICA-social security tax rate is 6.2% and the FICA-Medicare tax rate is 1.45%. Calculate the amount of employee taxes withheld and prepare the company's journal entry to record the January payroll assuming these were the only deductions.
What will be an ideal response?
| Salaries Expense | 8,000 | ? |
| FICA-Social Security Taxes Payable ($8,000 × .062) | ? | 496 |
| FICA-Medicare Taxes Payable ($8,000 × .0145) | ? | 116 |
| Employees' Federal Income Taxes Payable ($8,000 × .15) | ? | 1,200 |
| Salaries Payable | ? | 6,188 |
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