An employee receives an hourly rate of $15, with time and a half for all hours worked in excessof 40 during the week. Payroll data for the first week of the calendar year are as follows: hoursworked, 46; federal income tax withheld, $110; Social security tax rate, 6%; and Medicare taxrate, 1.5%; state unemployment tax, 5.4% on the first $7,000; federal unemployment tax, 0.8%on the first $7,000. What is the net amount to be paid to the employee? If required, round youranswers to the nearest cent.O a. $539.00Ob. $625,00Oc$544.88Od. $569.87

The objective of the question is to calculate the net amount to be paid to the employee after…

Answered: An employee receives an hourly rate of…

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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Encore Records has two employees who are paid on the 1st and 15th of each month for the work they performed in the preceding half-month. At February 28, each employee is owed gross pay of $1,000, but each one must have 10% of their pay withheld for income taxes. Each must also make Canada Pension Plan contributions of 5.1% of their gross pay and pay Employment Insurance premiums of 1.62% of their gross pay. Prepare the payroll journal entries required to reflect these amounts, along with Encore's share of CPP contributions and El premiums, in Encore's February 28 financial statements. Prepare the journal entry to record the accrual of the payroll on February 28. (Enter debits first, then credits. Enter explanations on the last line of the journal. Round amounts to the nearest cent.) Date February 28 Salaries Expense Accounts and Explanation Date February 28 Employee Income Tax Payable Employment Insurance Payable Canada Pension Plan Payable Salaries Payable To record payroll costs.…
McFriend Inc. records its liabilities for employees’ vacations at the end of each month. McFriend has 50 employees who are paid an average of $176 per day. The company allows 10 paid vacation days per year. For the August 31 payroll, McFriend pays its employees $160,000 for time worked and $10,000 for vacation taken. Required: Prepare the journal entry to record McFriend’s August 31 payroll.
Thomas Martin receives an hourly wage rate of $15, with time-and-a-half pay for all hours worked in excess of 40 hours during a week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $370; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the gross pay for Martin? Round your answer to the nearest whole dollar. Oa. $720 Ob. $780 Oc. $1,080 Od. $1,440
. Robart Services pays its employees monthly. The payroll information listed below is for January 2021, the first month of BMS's fiscal year. Assume none of the employees' earnings reached $7,000 during the month. Salaries $80,000 Federal income taxes to be withheld 16,000 Federal unemployment tax rate (FUTA) 0.80% State unemployment tax rate (after FUTA deduction) 5.40% Social security tax rate 6.2% Medicare tax rate 1.45% The journal entry to record payroll for the January 2021 pay period will include a debit to payroll tax expense of: A. $6,120. B. $4,960. C. $57,880. D$11,080
An employee earned $62,500 during the year working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 of employer earnings per calendar year and the FICA tax rate 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. What is the amount of total unemployment taxes the employee must pay?
Martin Jackson receives an hourly wage rate of $25, with time and a half for all hours worked in excess of 40 hours during a week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $362; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the net amount to be paid to Jackson? Oa. $1,225.00 Ob. $1,846.13 Oc. $771.13 Od. $1,633.13
An employee receives an hourly rate of 15 with time and a half for all fours worked in excess of 40during the week. Payroll data for the current week are as follows: hours worked 46- federal income tax withheld, 120 all earnings are subject to social security tax, social security tax rate 6% and Medicare tax rate 1.5%, state employment tax 5.4% on the first 7,000, federal unemployment tax 0.8% on the first 7,000. Prepare journal entry to record the salaries expense. Record the employer payroll tax expense.
Midwest Shipping pays employees at the end of each month. Payroll information is listed below for January, the first month of the fiscal year. Assume that none of the employees exceeds the federal unemployment tax maximum salary of $7,000 in January. Salaries Federal and state income taxes withheld Federal unemployment tax rate State unemployment tax rate (after FUTA deduction) Social Security (FICA) tax rate $900,000 120,000 0.80% 5.40% 7.65% Required: Record salaries expense and payroll tax expense for the January pay period. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record the employer payroll taxes. Note: Enter debits before credits.
Thomas Martin receives an hourly wage rate of $22, with time and a half for all hours worked in excess of 40 hours during a week. Payroll data for the current week are as follows: hours worked, 44; federal income tax withheld, $329; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the gross pay for Martin? a.$968 b.$1,012 c.$1,452 d.$1,936
Alamar Petroleum Company offers its employees the option of contributing retirement funds up to 5% of their salaries, with the contribution being matched by Alamar. The company also pays 80% of medical and life insurance premiums. Deductions relating to these plans and other payroll information for the first biweekly payroll period of February are listed as follows: Wages and salaries Employee contribution to voluntary retirement plan Medical insurance premiums Life insurance premiums Federal income taxes to be withheld Local income taxes to be withheld $ 3,700,000 101,000 59,000 10,700 570,000 70,000
XYZ Company is processing payroll for the week ending January 9th. Employee earnings total $5,000. Federal income tax withheld from employee paychecks totaled $1,100. The social security tax rate is 6%, the Medicare tax rate is 1.5%, the state unemployment tax rate is 5.4% and the federal unemployment tax rate is .8%. a) Journalize the payroll entry for the week.
Nielson Corporation has three employees. Each employee is paid overtime at time and one-half after the first 40 hours worked for the week. The current social security and medicare taxes are 6.2% and 1.45% respectively. Social security tax is capped on the first $140,000 of annual wages. The current unemployment tax rates are 3% for state and 1% for federal on the first $8,000 of annual wages. Below is the payroll information for the first week of the new year (therefore, the annual wage caps will not apply). Employee Hourly Rate Hours Worked Federal W/H Rate Roth 401k Deduction Health Insurance United Way Susan W. 27 45 20% 120 150 5 George B. 25.25 50 20% 100 200 5 Maria M. 23 48 15% 75 125 5 a. Prepare a payroll register for the week's payroll (use the form provided to the right).…

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