This document provides instructions for recording employer payroll taxes. It discusses entering accumulated and total earnings for each employee to calculate unemployment taxable earnings. It then shows how to calculate federal and state unemployment taxes based on taxable earnings and tax rates. Finally, it demonstrates how to journalize the payroll tax expense account and related liability accounts for social security, Medicare, federal unemployment and state unemployment taxes.

1. LESSON 13-2
Recording Employer
Payroll Taxes
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

2. 2
UNEMPLOYMENT TAXABLE EARNINGS
page 374
2
1
3
1. Enter accumulated earnings and total earnings for each employee.
2. Enter unemployment taxable earnings.
3. Total the Unemployment Taxable Earnings column.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 13-2

3. 3
UNEMPLOYMENT TAXES
Unemployment
×
Taxable
Earnings
$790.00
×
Unemployment
×
Taxable
Earnings
$790.00
×
Federal
Unemployment
Tax Rate
0.8%
State
Unemployment
Tax Rate
5.4%
page 375
Federal
= Unemployment
Tax
=
$6.32
State
= Unemployment
Tax
=
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
$42.66
LESSON 13-2

4. JOURNALIZING EMPLOYER
PAYROLL TAXES (continued on next slide)
4
page 376
December 15. Recorded
employer payroll taxes expense,
$485.92, for the semimonthly pay
period ended December 15.
Taxes owed are: social security
tax, $354.11; Medicare tax,
$82.83; federal unemployment
tax, $6.32; state employment tax,
$42.66. Memorandum No. 63.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 13-2

5. 5
JOURNALIZING EMPLOYER
PAYROLL TAXES (continued from previous slide)
2
1
4
3
5
1. Write the date.
2. Write the title of the expense
account debited.
3. Write the memorandum number.
page 376
6
4. Write the debit amount.
5. Write the titles of the liability
accounts credited.
6. Write the credit amounts.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 13-2

6. 6
TERMS REVIEW
page 377
 federal unemployment tax
 state unemployment tax
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 13-2

7. 6
TERMS REVIEW
page 377
 federal unemployment tax
 state unemployment tax
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 13-2