A company pays a basic rate of N$5 per hour. An employee is expected to work seven hours a day Monday to Friday. Due to some backlogs, the employee worked five additional hours per week. All overtime hours are paid at time and a half. Because of some faulty material, 15 hours of direct labour time were registered as idle. Employee contributes 10% towards medical aid, 10% towards pension and 10% is tax. All these deductions are based on gross wages. Assume a month has four weeks. Calculate the employee’s basic wage for the

A company pays a basic rate of N$5 per hour. An employee is expected to work seven hours a day Monday to Friday. Due to some backlogs, the employee worked five additional hours per week. All overtime hours are paid at time and a half. Because of some faulty material, 15 hours of direct labour time were registered as idle. Employee contributes 10% towards medical aid, 10% towards pension and 10% is tax. All these deductions are based on gross wages. Assume a month has four weeks. Calculate the employee’s basic wage for the

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter9: Payroll Accounting: Employer Taxes And Reports

Section: Chapter Questions

Problem 1CP: Payrex Co. has six employees. All are paid on a weekly basis. For the payroll period ending January...

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Payrex Co. has six employees. All are paid on a weekly basis. For the payroll period ending January 7, total employee earnings were 12,500, all of which were subject to SUTA, FUTA, Social Security, and Medicare taxes. The SUTA tax rate in Payrexs state is 5.4%, but Payrex qualifies for a rate of 2.0% because of its good record of providing regular employment to its employees. Other employer payroll taxes are at the rates described in the chapter. REQUIRED 1. Calculate Payrexs FUTA, SUTA, Social Security, and Medicare taxes for the week ended January 7. 2. Prepare the journal entry for Payrexs payroll taxes for the week ended January 7. 3. What amount of payroll taxes did Payrex save because of its good employment record?
Senen, a factory laborer earns P18,000 per month, and the company pays one month salary as a bonus at the end of the year. Senen is entitled to a half month paid vacation leave. The company also pays P4,000 a year into a pension fund of the worker. All fringe benefits of factory laborer are charged to the factory overhead control account. The fringe benefits are charged to production during the 11 1/2 months the employee is at work. What is the amount of estimated liability for the fringe benefits?
Senen, a factory laborer earns P18,000 per month, and the company pays one month salary as a bonus at the end of the year. Senen is entitled to a half month paid vacation leave. The company also pays P4,000 a year into a pension fund of the worker. All fringe benefits of factory laborer are charged to the factory overhead control account. The fringe benefits are charged to production during the 11 1/2 months the employee is at work. a. What is the estimated liability for fringe benefits? b. Determine the gross payroll. c. What is the amount charged to Worked in Process account? d. What is the amount charged to Factory Overhead?
Jason Jefferies earned $10,200 while working for Brown Company. The company's SUTA tax rate is 2.9% on the first $7,000 of each employee's earnings. Compute the total unemployment taxes (SUTA and FUTA) that Brown Company should pay on Jeffries' earnings.
An appliance company has three installers. Larry earns $375 per week, Curly earns $440 per week, and Moe earns $595 per week. The company's SUTA rate is 5.4%, and the FUTA rate is 6.0% minus the SUTA. As usual, these taxes are paid on the first $7,000 of each employee's earnings. (a) How much SUTA and FUTA tax (in $) does the company owe for the first quarter of the year? total SUTA tax $ 989.82 total FUTA tax $ 1099.80 (b) How much SUTA and FUTA tax (in $) does the company owe for the second quarter of the year? total SUTA tax $ total FUTA tax Need Help? Read It
An employee earns $25 per hour and 1.50 times that rate for all hours in excess of 40 hours per week. There two headcounts in the warehouse, each one work 40 regular hours, one 5 hours over time and the other 10 hours during the week. Assume further that the social security tax rate was 6.0% (on earnings up to $100,000), the Medicare tax rate was 1.5%, and federal income tax to be withheld was $714. Prepare a payroll register for the first week of the year January 7, 2011. The payroll should pay in January 10, 2011. d. Prepare payroll and payment entries.
An appliance company has three installers. Larry earns $375 per week, Curly earns $490 per week, and Moe earns $575 per week. The company's SUTA rate is 5.4%, and the FUTA rate is 6.0% minus the SUTA. As usual, these taxes are paid on the first $7,000 of each employee's earnings.(a)How much SUTA and FUTA tax (in $) does the company owe for the first quarter of the year?total SUTA tax $ total FUTA tax $ (b)How much SUTA and FUTA tax (in $) does the company owe for the second quarter of the year?total SUTA tax $ total FUTA tax $
An appliance company has three installers. Larry earns $315 per week, Curly earns $470 per week, and Moe earns $575 per week. The company's SUTA rate is 5.4%, and the FUTA rate is 6.0% minus the SUTA. As usual, these taxes are paid on the first $7,000 of each employee's earnings. (a) How much SUTA and FUTA tax (in $) does the company owe for the first quarter of the year? total SUTA tax$ total FUTA tax$ (b) How much SUTA and FUTA tax (in $) does the company owe for the second quarter of the year? total SUTA tax$ total FUTA tax$
An appliance company has three installers. Larry earns $315 per week, Curly earns $470 per week, and Moe earns $565 per week. The company's SUTA rate is 5,4%, and the FUTA rate is 6.0% minus the SUTA. As usual, these taxes are paid on the first $7,000 of each employee's earnings. (a) How much SUTA and FUTA tax (in s) does the company owe for the first quarter of the year? total SUTA tax total FUTA tax Enter a number. (b) How much SUTA and FUTA tax (in S) does the company owe for the second quarter of the year? total SUTA tax 5 total FUTA tax
An employee earns $40 per hour and 1.75 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 60 hours during the week, and that the gross pay prior to the current week totaled $58,000. Assume further that the social security tax rate was 6.0% (on earnings up to $100,000), the Medicare tax rate was 1.5%, and federal income tax to be withheld was $714. a. Determine the gross pay for the week. b. Determine the net pay for the week.
An employee earns $5,500 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $182 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $150 and contributes $75 to a retirement plan each month. What is the amount of net pay for the employee for the month of January? (Round your intermediate calculations to two decimal places.)
Rio Company pays time and a half for hour in excess of 40 hours per week. An individual is paid P75.00 per hour and worked 44 hours a week. Compute for the weekly earnings of the employee. Based on the above, assume further that the employer contribution to SSS, Philhealth, and Pag-ibig amount to P1,200 for the week, and that any overtime work is not required, how much is the total earnings that should be charged to (A) Work in Process and (B) Manufacturing Overhead Control account? Roundoff to the nearest hundredths