3-4A • L O 2, 3See Example 3-1 on page 3-11Ken Gorman is a maitre d' at Carmel Dinner Club. On February 1, 20-- his gross pay was $800 (three days working,one paid vacation day, and one paid sick day). He also reported to his employer tips of $900 for the previous month(applicable taxes to be deducted out of this pay). Gorman belongs to the company's 401(k) plan and has 5% of hisgross pay ($800) deducted each week (salary reduction). Carmel Dinner Club also provides a matching contribution($40) into the plan for Gorman. This week's pay would have a:a. Deduction for OASDI tax24b. Deduction for HI tax$3-5A LO 3In 20--, the annual salaries paid each of the officers of Abrew, Inc., follow. The officers are paid semimonthly on the15th and the last day of the month. Compute the FICA taxes to be withheld from each officer's pay on (a) November15 and (b) December 31.See Example 3-1 on page 3-11SHOWME HOWa.November 15HIAnnualOASDI TaxableOASDITaxableHIName and TitleSalaryEarningsТахEarningsТахHanks, Timothy, PresidentGrath, John, VP FinanceJames, Sally, VP SalesKimmel, Joan, VP Mfg.Wie, Pam, VP PersonnelGrant, Mary, VP Secretary$156,000138,00069,60054,00051,60049,200December 31b.HIAnnualOASDI TaxableOASDITaxableHIName and TitleSalaryEarningsТаxEarningsTaxHanks, Timothy, PresidentGrath, John, VP FinanceJames, Sally, VP SalesKimmel, Joan, VP Mfg.Wie, Pam, VP PersonnelGrant, Mary, VP Secretary$156,000138,00069,60054,00051,60049,2003-38 but after the employer has collected the tax, the employee's liability ceases. Thefollowing examples illustrate the computation of the FICA taxes to be withheld.roll Accounting 202oCHAPTER 3 Social Security Taxes3-11afr nability for the tax extends to both the employee and the employer,1.asey Berra, employed by Gobel Company, earned $460 during the week ended January 25, 20--. Prior toSandary 25, Berra's cumulative gross earnings for the year were $2,765.70. FICA taxes to be withheld on 3400are computed as follows:EXAMPLE 3-1OASDITaxable WagesHITax Rate2446024X 1.45%Taxable Wages460OASDI Tax to Be Withheld.X 6.2%Tax Rate$ 28.52HI Tax to Be Withheld6.672.Francis Aha, a salaried employee of Wilson Advertising Agency, is paid every Friday. She earned S1925 1oron Nor to the pay of November 1, 20--, she had earned $132.450, The FICA taxes to be withheld from Aha's payNovember 1 are computed as follows:OASDIHITaxable Wage Limit.Wages Paid to Date.Taxable Wages This PayNONE$132,900Taxable Wage Limit$132,450Wages Paid to DateTaxable Wages This Pay132,450$ 1,925X 1.45%$ 27.9124450Tax Rate.X 6.2%Tax RateOASDI Tax to Be Withheld.$427.90HI Tax to Be Withheld.3.Marc Todd, president of Uni-Sight, Inc., is paid $5,200 semimonthly. Prior to his last pay on December 27, 20--, Toddnad earned $135,000. The FICA taxes to be withheld from Todd's pay on December 27 are computed as follows:OASDIHINONETaxable Wage Limit..$132,900Taxable Wage Limit..$135,000Wages Paid to Date.Taxable Wages This Pay.OASDI Tax to Be Withheld. .Wages Paid to Date.Taxable Wage This Pay...135,000$ 5,200-0-X1.45%Tax Rate$-0-$ 75.40HI Tax to Be Withheld.Jennifer Matthews employed by Quality Company is paid $5,000 weekly. Prior to the pay of September 27, 20--, shehad earned $200,000. The FICA taxes to be withheld from Jennifer's pay on September 27 are computed as follows:4.HIOASDITaxable Wage Limit (Applicableon Wages at 1.45%)Wages Paid to DateTaxable Wage This Pay...Taxable Wage Limit..$132,900NONE200,000$200,000Wages Paid to Date...Taxable Wages This Pay2$-0-$ 5,000OASDI to Be Withheld,2$-0-1.45%Tax Rate.. ..$ 72.50HI Tax to Be WithheldAdditional 0.9% HI Tax on Wages inExcess of $200,000 = $5,000X 0.9% D%3D45.00%3DTotal HI Tax to Be Withheld. . $ 117.50rin excess of the taxable

The federal Old-Age, Survivors, and Disability Insurance (OASDI) program is the official name for…

3-5A LO 3 In 20-, the annual salaries paid each of the officers of Abrew, Inc., follow. The officers are paid semimonthly on the 15th and the last day of the month. Compute the FICA taxes to be withheld from each officer's pay on (a) November 15 and (b) December 31. See Example 3-1 on page 3-11 SHOW ME HOW

3-5A LO 3 In 20-, the annual salaries paid each of the officers of Abrew, Inc., follow. The officers are paid semimonthly on the 15th and the last day of the month. Compute the FICA taxes to be withheld from each officer's pay on (a) November 15 and (b) December 31. See Example 3-1 on page 3-11 SHOW ME HOW

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exercise 8-6
Example 3-1 During 20--, Rachael Lopez, president of Mathieson Company, was paid a semimonthly salary of $9,000. Compute the amount of FICA taxes that should be withheld from her. Note: Rachael's tax return status s single. If an amount is zero, enter "0". a. 9th paycheck b. 17th paycheck c. 22nd paycheck d. If Lopez's year-to-date earnings as of her 24th paycheck are $216,000, and her year-end bonus is $100,000, how much additional 0.9% HI tax would be deducted for the year? $ $ OASDI 558 186 ✓ 0 ✓ $ HI 1,044 ✔
Employee Net Pay Kenneth Inverness's weekly gross earnings for the week ended April 22 were $1,000, and his federal income tax withholding was $180. Assuming the social security rate is 6% and Medicare is 1.5%, what is Kenneth's net pay? Note: If required, round your answer to two decimal places. All work saved.
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No 1 Required Information [The following information applies to the questions displayed below.] d. Prepare the journal entry to record the payroll tax expense and fringe benefit expense for Webber Packing Company for the week. (Round your answers to 2 decimal places.) 2 The following Information is available for the employees of Webber Packing Company for the first week of January Year 1: 1. Kayla earns $27 per hour and 1⁄2 times her regular rate for hours over 43 per week. Kayla worked 45 hours the first week in January. Kayla's federal income tax withholding is equal to 12 percent of her gross pay. Webber pays medical Insurance of $95 per week for Kayla and contributes $59 per week to a retirement plan for her. 2. Paula earns a weekly salary of $1,050. Paula's federal Income tax withholding is 18 percent of her gross pay. Webber pays medical Insurance of $115 per week for Paula and contributes $95 per week to a retirement plan for her. 3. Vacation pay is accrued at the rate of 2…
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Problem 3 - 13A (Algo) Parker is a salaried, nonexempt administrator for Forise Industries and is paid biweekly. The annual salary is $66, 600 with a standard workweek of 40 hours. During the pay period ending February 4, 2022, Parker worked 8 hours of overtime. Parker is married filing jointly with two dependents under the age of 17. Required: Complete the following payroll register for Parker's pay. Note: Round your intermediate calculations and final answers to 2 decimal places.\table [[Company, Forise In,