Payroll Review ProblemCalculate payroll for Uno company’s one employee for the first week of March. Their only employee worked 50 hours and makes $12/hour. The employee has not exceeded any of the wage or tax limits. Use the tax rates as follows:TAXRATELIMITSFICA – Soc Sec6.20%$118,500FICA – Medicare1.45%NoneFed Inc Tax8.00%NoneFUTA0.60%$7,000SUTA5.40%$12,000 Required:Calculate gross pay, deductions, and net pay.Prepare the journal entry to record wages expense and its related payroll liabilities for the employee’s payroll.Prepare the journal entry to record the payroll tax expense and related liabilities for Uno Company’s payroll.

Step 1 Payroll is the total of all compensation or remuneration given by a business entity to its employees over the given period of time. It is generally managed and prepared by the accounting or human resources department of a business.Step 2 Formulation Computation 2, 3

Answered: Calculate gross pay, deductions, and…

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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Payroll Review Problem

Calculate payroll for Uno company’s one employee for the first week of March. Their only employee worked 50 hours and makes $12/hour. The employee has not exceeded any of the wage or tax limits. Use the tax rates as follows:

TAX	RATE	LIMITS
FICA – Soc Sec	6.20%	$118,500
FICA – Medicare	1.45%	None
Fed Inc Tax	8.00%	None
FUTA	0.60%	$7,000
SUTA	5.40%	$12,000

Required:

Calculate gross pay, deductions, and net pay.
Prepare the journal entry to record wages expense and its related payroll liabilities for the employee’s payroll.
Prepare the journal entry to record the payroll tax expense and related liabilities for Uno Company’s payroll.

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