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. a. Determine the gross pay for the week by employee. b. Determine the net pay for the week by employee c. Determine the total deductions for the week. The payroll should pay in January 10, 2011. d. Prepare payroll and payment entries.
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. a. Determine the gross pay for the week by employee. b. Determine the net pay for the week by employee c. Determine the total deductions for the week. The payroll should pay in January 10, 2011. d. Prepare payroll and payment entries.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 4E
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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.
a. Determine the gross pay for the week by employee.
b. Determine the net pay for the week by employee
c. Determine the total deductions for the week.
The payroll should pay in January 10, 2011.
d. Prepare payroll and payment entries.
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