UNEMPLOYMENT TAXABLE EARNINGS Lesson 14-2 UNEMPLOYMENT TAXABLE EARNINGS 2 1 1 3 1. Enter accumulated earnings and total earnings for each employee. 2. Enter unemployment taxable earnings. 3. Total the unemployment taxable earnings column. Lesson 14-2, page 337

        UNEMPLOYMENT TAXES Calculate Unemployment Taxes—Federal     Unemployment Federal Federal Taxable Unemployment Unemployment Earnings  Tax Rate = Tax $183.75  0.8% = $1.47 Calculate Unemployment Taxes—State     Unemployment State State Taxable Unemployment Unemployment Earnings  Tax Rate = Tax $183.75  5.4% = $9.92 Lesson 14-2, page 338

JOURNALIZING EMPLOYER PAYROLL TAXES December 15. Recorded employer payroll taxes expense, $315.72, for the semimonthly pay period ended Dec. 15. Taxes owed are: social security tax, $247.26; Medicare tax, $57.07; federal unemployment tax, $1.47; state unemployment tax, $9.92. Memorandum No. 63. Accounts Affected Payroll Taxes Expense Soc. Security Tax Pay. Medicare Tax Payable Unemp. Tax Pay.—Fed. Unemp. Tax Pay.—State Classification Expense Liability Change Increased Entered Debit side Credit side Payroll Taxes Expense Social Security Tax Payable Medicare Tax Payable normal balance normal balance normal balance  315.72  57.07  247.26 Unemployment Tax Payable—Federal Unemployment Tax Payable—State normal balance normal balance   1.47 9.92 Lesson 14-2, page 339

JOURNALIZING EMPLOYER PAYROLL TAXES 2 3 4 1 6 5 1. Write the date. 2. Write the expense account debited. 3. Write the memorandum number. 4. Write the debit amount. 5. Write the titles of the liability accounts credited. 6. Write the credit amounts. Lesson 14-2, page 339

TERMS REVIEW federal unemployment tax state unemployment tax Lesson 14-2, page 340