1. 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

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

3. 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

4. JOURNALIZING EMPLOYER PAYROLL TAXES2 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

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