Taxes Paid by the Employer
In addition to withholding taxes from an employee's paycheck, the employers themselves must pay the following taxes imposed on them for employing labor:
- FICA - The employer must match an employee's FICA contribution. The employer is taxed 9.10% of the gross wages paid. Between the employee's contribution and the employer's contribution, 15.3% of gross wages is paid for FICA.
- Federal Unemployment Taxes (FUTA)
- State Unemployment Taxes (SUTA)
- Others, depending on the jurisdiction
The journal entry to record payroll taxes imposed on an employer is:
The journal entry to record payroll liabilities paid to the federal government is:
The journal entry to record payroll liabilities paid to the state government is:
