An employee receives an hourly wage rate of $15, with time and a half for all hours worked in excess of 40 during the first week of the calendar year. Payroll data for thefirst week of the calendar year are as follows: hours worked, 48; federal income tax withheld, $120; social security tax rate, 6.0%; Medicare tax rate, 1.5%; stateunemployment tax, 5.4% on the first $7,000; and federal unemployment tax, 0.8% on the first $7,000. What is the net amount to be paid to the employee?a. $601.50Ob. $660.00Oc. $568.74Od. $574.90

Particulars Calculation AmountNormal Pay for hours Worked (A) $15* 48 hrs 720Additional Pay for…

Answered: An employee receives an hourly wage…

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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. 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
The summary of the payroll for the monthly pay period ending July 15 indicated the following: Sales salaries $135,000 Federal income tax withheld 32,300 Office salaries 30,000 Medical insurance withheld 7,370 Social security tax withheld 10,200 Medicare tax withheld 2,550 Journalize the entries to record (a) the payroll and (b) the employer's payroll tax expense for the month. The state unemployment tax rate is 3.1%, and the federal unemployment tax rate is 0.8%. Only $30,000 of salaries are subject to unemployment taxes.
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?
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.
The summary of the payroll for the monthly pay period ending July 15 indicated the following: Sales salaries $125,000 Federal income tax withheld 32,300 Office salaries 35,000 Medical insurance withheld 7,370 Social security tax withheld 10,200 Medicare tax withheld 2,550 Journalize the entries to record (a) the payroll and (b) the employer's payroll tax expense for the month. The state unemployment tax rate is 3.1%, and the federal unemployment tax rate is 0.8%. Only $25,000 of salaries are subject to unemployment taxes.
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
An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the first week of the calendar year are as follows: hours worked, 46; federal income tax withheld, $110; Social security tax rate, 6%; and Medicare tax rate, 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 your answers to the nearest cent. O a. $539.00 Ob. $625,00 Oc$544.88 Od. $569.87
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).…
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.)
Based on the information below, Prepare the journal entry to record Regis’s (employer) payroll taxes resulting from the January 8 payroll. Regis’s merit rating reduces its state unemployment tax rate to 5% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.60%. (Round your answers to 2 decimal places.) On January 8, the end of the first weekly pay period of the year, Regis Company's payroll register showed that its employees earned $23,760 of office salaries and $70,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.20%, FICA Medicare taxes at the rate of 1.45%, $12,760 of federal income taxes, $1,350 of medical insurance deductions, and $780 of union dues. No employee earned more than $7,000 in this first period.
Ehrlich Co. began business on January 2. Salaries were paid toemployees on the last day of each month, and social security tax,Medicare tax, and federal income tax were withheld in the requiredamounts. An employee who is hired in the middle of the month receiveshalf the monthly salary for that month. All required payroll tax reports were filed, and the correct amount of payroll taxes was remitted by thecompany for the calendar year. Early in the following year, before theWage and Tax Statements (Form W-2) could be prepared for distributionto employees and for filing with the Social Security Administration, theemployees' earnings records were inadvertently destroyed.None of the employees resigned or were discharged during the year, and there were no changes in salary rates. The social security tax waswithheld at the rate of 6.0% and Medicare tax at the rate of 1.5% onsalary. Data on dates of employment, salary rates, and employees'income taxes withheld, which are summarized as follows,…

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