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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Record payroll (LO8–3)
E8–8 During January, Luxury Cruise Lines incurs employee salaries of $3 million. Withholdings in
January are $229,500 for the employee portion of FICA, $450,000 for federal income tax, $187,500 for
state income tax, and $30,000 for the employee portion of health insurance (payable to Blue Cross Blue
Shield). The company incurs an additional $186,000 for federal and state unemployment tax and $90,000 for the employer portion of health insurance.
Required:
1. Record the employee salary expense, withholdings, and salaries payable.
2. Record the employer-provided fringe benefits.
3. Record the employer payroll taxes.
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