3. Theodore Simpson works for Blair Company all year and earns a monthly salary of $4,000. There is no overtime pay. Based on Simpson's W-4, Blair Company withholds income taxes at 15% of his gross pay. As of July 31, Simpsonhad $28,000 of cumulative earnings.View the payroll tax information.Journalize the accrual of salary expense for Blair Company related to the employment of Theodore Simpson for the month of August. (Record debits first, then credits. Round all amounts to the nearest cent. Select the explanation on thelast line of the journal entry table.)DateAccounts and ExplanationDebitCreditPayroll Tax InformationFor all payroll calculations, use the following tax rates and round amounts to thenearest cent:Employee: OASDI: 6.2% on first $147,000 earned; Medicare: 1.45% upto $200,000, 2.35% on earnings above $200,000.Employer: OASDI: 6.2% on first $147,000 earned; Medicare: 1.45%; FUTA:0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned.PrintDone-

Detailed explanation:August 31. To record accrual of salaries expense and deductions of taxes from…

Answered: 3. Theodore Simpson works for Blair…

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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You have just received a garnishment order for your employee Derek Jones. The gamishment order requires you to deduct and remit 17% of gross eanings less statutory deductions, from Derek's pay for court ordered family support payments. You are preparing the January 15", 2018 semi-monthly payroll and have the following information related to Derek Employee Information Employee Name Birth Date Derek Jones May 17, 1992 Pay Details Annual salary Vacation pay Gamishment order Pay schedule Employer name $45,000 6% paid each pay 17% Semi-monthly St. Johns Company located in Brandon, Manitoba Miscellaneous deductions RRSP deduction $4150.00 per month Union dues $430.00 per pay Additional information Federal tax (already calculated) $134.02 Provincial tax (already calculated) 5128.24 CPP deduction (already calculated) $84.60 El deduction (already calculated)- $34.87 Required: Calculate Derek's January 15h Net Pay Show and label your calculations
The monthly salaries for December and the year-to-date earnings of the employees of Lincoln Project Company as of November 30 follow. Determine the amount of social security tax to be withheld from each employee's gross pay for December Assume a 6.2 percent social security tax rate and an earnings base of $142,800 for the calendar year. Note: Round your answers to 2 decimal places. Employee December Number Salary 1 2 3. 4 Year-to-Date Social Security Earnings Through November 30 $ 9,000.00 $ 72,000.00 10,000,00 70,000.00 11,000.00 115,500.00 14,000.00 132,000.00 Taxable Earnings December Social Security Tax 6.2%
An employee receives an hourly rate of $25.00, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 42; federal income tax withheld, $281.00; social security tax rate, 6.0%; and Medicare tax rate, 1.5% on all earnings. What is the net amount to be paid to the employee? Select the correct answer. $769.00 $1,075.00 $688.38 $713.38
Calculate payroll An employee earns $30 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 54 hours during the week, determine the employee’s (a) gross pay and (b) net pay for the week. Assume that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and the employee’s federal income tax withheld is $295.
Lee Financial Services pays employees monthly. Payroll information is listed below for January 2021, the first month of Lee’s fiscal year. Assume that none of the employees exceeded any relevant base of pay, such that all benefit percentages apply to the entire $440,000 payroll. Salaries $ 440,000 Federal income taxes to be withheld 88,000 Federal unemployment tax rate 0.60 % State unemployment tax rate (after SUTA deduction) 5.40 % Social security tax rate 6.20 % Medicare tax rate 1.45 % Required:Calculate the income and payroll taxes for the January 2021 pay period. Prepare the appropriate journal entries to record salaries expense and payroll tax expense for the January 2021 pay period.
22. Laine, a tipped employee, reported to her employer that she had received $310 in tips during June. On the next payday, July 12, she was paid a regular weekly salary of $375, a) The amount of OASDI taxes to withhold from Laine's pay is b) The amount of HI taxes to withhold from Laine's pay is c) Laine's net pay (take-home pay) for the pay dated July 12 (assuming no other tax withholdings) is
An employee receives an hourly rate of $17, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 49; federal income tax withheld, $80; state income tax withheld is $22; social security tax rate, 6.2%; and Medicare tax rate, 1.45%. What is the net amount to be paid to the employee? Multiple Choice ) $737.92 $680.00 $909.50 $171.58
Peter Greeda's regular hourly wage rate is $13, and he receives 1.5 times his normal rate for hours worked in excess of 40. During a March pay period, Peter worked 47 hours. Peter's federal income tax withholding is $80, and he has no voluntary deductions. Compute Peter's gross earnings for the pay period. Round your answer to 2 decimal places.
Elizabeth's regular hourly wage rate is $22, and she receives an hourly rate of $33 for work in excess of 40 hours. During a January pay period, Elizabeth works 49 hours. Elizabeth's federal income tax withholding is $97, and she has no voluntary deductions. Prepare the employer's journal entry to record payroll taxes for the period. Ignore unemployment taxes. Assume the FICA tax rate is 7.65%. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round the answers to 2 decimal places, eg. 15.25) Date Account Titles and Explanation Jan, 15 Payroll Tax Expense FICA Taxes Payable Debit 98.30 Credit 98.30
Lucy Rose works at College of Fort Worth and is paid $12 per hour for a 40-hour workweek and time-and-a-half for hours above 40. A (Click the icon to view payroll tax rate information.) Read the requirements. Requirement 2. Rose is single, and her income tax withholding is 15% of total pay. Rose's only payroll deductions are payroll taxes. Compute Rose's net (take-home) pay for the week. Assume Rose's earnings to date are less than the OASDI limit. (Round all amounts to the nearest cent.) Withholding deductions: Net (take-home) pay Requirement 3. Journalize the accrual of wages expense and the payments related to the employment of Lucy Rose. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin with the entry to accrue wages expense and payroll withholdings for Lucy Rose. (Round all amounts to the nearest cent.) Date Accounts and Explanation Debit Credit
Uramilaben
In January, the payroll supervisor determines that gross earnings for Concord Company are $84,000. All earnings are subject to 7.65% FICA taxes, 5.40% state unemployment taxes, and 0.60% federal unemployment taxes. (b) Record the employer's payroll taxes. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 125.) Account Titles and Explanation Debit Credit [

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