Airline Temporary Services (ATS) pays employees monthly. Payroll information is listed below for January, the first month of ATS’s fiscal year. Assume that none of the employees exceeds the federal unemployment tax maximum salary of $7,000 in January.Salaries expense $600,000Federal and state income tax withheld $120,000Federal unemployment tax rate 0.80%State unemployment tax rate (after FUTA deduction) 5.40%Social Security (FICA) tax rate 7.65%Required:Record salaries expense and payroll tax expense for the January pay period.

Q: Journalize the transactions shown

A: Calculate Salary expense = Gross salary - Tax payables - Insurance premium payables.

Q: Provide the journal entry to record the payroll tax expense for the period.

A: Given: Withheld social security = $ 4,200 Tax of Medicare = $ 1,050 Total salaries = $ 70,000…

Q: 3. Tesla, Inc. pays employees at the end of each month. Payroll information is listed below for…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: An employee earns $24 per hour and 1.5 times that rate for all hours in excess of 40 hours per week.…

A: Formula: Net Pay = Gross pay - Total deductions Deductions are to be subtracted  from Gross pay to…

Q: Paradise Hills Berry Farm has 21 employees who are paid biweekly. The payroll register showed the…

A: The objective of the question is to prepare a journal entry to record the payroll expenses for…

Q: An employee receives an hourly rate of $18, with time and a half for all hours worked in excess of…

A: Introduction:- The following basic information as follows under:- Federal income tax withheld, $144…

Q: The payroll register of Seaside Architecture Company indicates $980 of Social Security and $255 of…

A: Withheld Tax : Withheld tax applicable to employment income.  A withheld tax is a type of income tax…

Q: , 1.5%. What is the net amount to be paid to Jackson?

A: Given information is: Hours worked = 45 Normal hours = 40 Hourly wage rate = $15

Q: The monthly salaries for December and the year-to-date earnings of the employees of Lincoln Project…

A: The objective of the question is to calculate the amount of Medicare tax to be withheld from each…

Q: At the end of each month, a company pays its employees. Payroll information below is for January,…

A: When a company records the compensation of its employees, such type of accounting is known as…

Q: Journalize Payroll Tax The payroll register of Heritage Co. indicates $3,900 of social security…

A: A payroll tax is a tax paid on the wages and salaries of employees to finance social insurance…

Q: He payroll register of Seaside APchitecture Company indicates $820 of social security and $215 of…

A: Payroll journal entries are used to keep track of employee compensation. The general ledger then…

Q: The payroll register or Longboat Company indicates $5,400 of social security withheld and $1,350 of…

A: Compute state and federal unemployment compensation taxes as shown below:

Q: Cruz Company has gathered the information needed to complete its Form 941 for the quarter ended…

A: Form 941 for the quarter ended September 30, 20--.

Q: A company pays employees at the end of each month. Payroll information is listed below for January,…

A: Payroll taxes are applicable to employers and employees which must be adjusted by employer at the…

Q: The payroll register of Seaside Architecture Company indicates $820 of social security and $216 of…

A: Journal entry is the primary step to record the transaction in the books of accounts. The expense…

Q: An employee receives an hourly rate of $14, with time and a half for all hours worked in excess of…

A: Salaries expense is the addition of regular and overtime earnings and then various deductions are…

Q: Journalize Payroll Tax The payroll register of Wang Engineering Co. indicates $2,346 of social…

A: State unemployment tax = earnings subject to state and federal tax × 5.4%

Q: For tax purposes, assume that the maximum taxable earnings are $118,500 for Social Security and…

A: Taxable Earnings: These are those earnings for which one has to pay tax to the government as per the…

Q: The payroll register of Heritage Co. indicates $1,800 of social security withheld and $450.00 of…

A: AccountDebitCreditPayroll Tax Expense$2,826.60 Social Security Tax Payable $1,800Medicare Tax…

Q: Required information [The following information applies to the questions displayed below.] BMX…

A: The question is to solve for situation a only. Payroll taxes expense = FICA - Social Security taxes…

Q: The employees of Ethereal Bank are paid on a semimonthly basis. All employees are single. Required:…

A: FICA taxes include Social Security and Medicare contributions. These taxes are deducted from the…

Q: The payroll register of Heritage Co. indicates $4,800 of social security withheld and $1,200 of…

A: Answer:-  Journal entry meaning:- The act of maintaining or creating records of any transaction,…

Q: The payroll register of Heritage Co. indicates $13,800 of social security withheld and $3,450 of…

A: State unemployment tax payable= Earnings x State rate= $36000*5.40%= $1944 Federal Unemployment tax…

Q: The monthly salaries for December and the year-to-date earnings of the employees of Lincoln Project…

A: Step 1:Note:FICA social security earning base is $ 142,800.Except for Employee #4, each employee's…

Q: Martin Jackson receives an hourly wage rate of $15, with time and a half for all hours worked in…

A: Formula: Net pay = Gross pay - All deductions.

Q: An employee receives an hourly wage rate of $21, with time and a half for all hours worked in excess…

A: Gross pay is the total wages paid to the employee without any deductions whereas net pay is the…

Q: An employee receives an hourly rate wage of $24, with time and a half for All hours worked in excess…

A: In this case, we have to deduct all the withheld income tax, Social Security tax & Medicare tax…

Q: Rand Company’s payroll on December 31 of the current year is as follows: Prepare the journal entries…

A: Payroll is the salary that a company is required to pay to its workers for a set period of time or…

Q: Calculation and Journal Entry for Employer Payroll Taxes Portions of the payroll register for La…

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Q: The payroll register of Seaside Architecture Company indicates $860 of Social Security and $211 of…

A: Federal tax=Unemployment compensation tax×0.8%=$5,300×0.8%=$42.4

Q: Journalize Payroll Tax The payroll register of Wang Engineering Co. indicates $2,022 of social…

A: Payroll expense means expenses related to employees compensation. Several taxes needs to be deducted…

Q: Sylvester's gross pay for the month of February is $3,900. His year-to-date pay is under the limit…

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Q: The employees of Ethereal Bank are paid on a semimonthly basis. All employees are single. Required:…

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Q: An employee receives an hourly rate of $23.00, with time and a half for all hours worked in excess…

A: After withholdings have also been deducted from an employee's gross wage, net compensation is the…

Q: The monthly salaries for

A: Social Security tax, also known as the Old-Age, Survivors, and Disability Insurance (OASDI) tax, is…

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A: Definition: The net amount payable to the employee is the amount paid net of taxes. It is calculated…

Q: The payroll register of Salem Communications Co. indicates 6.2% of social security withheld and…

A: Payroll taxes are the amount of tax liability that is to be paid on payment of salaries and wages to…

Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.