Calculation of Taxable Earnings and Employer Payroll Taxes, and Preparation of Journal Entry 1. Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes. 2. Prepare the journal entry to record the employer's payroll taxes as of October 7, 20--. Round your answers to the nearest cent. If an amount box does not require an entry, leave it blank. Selected information from the payroll register of Howard's Cutlery for the week ended October 7, 20--, is presented below. Social Security tax is 6.2% on the first $118,500 of earnings for each employee. Medicare tax is 1.45% on gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings. Taxable Earnings Employee Name Cumulative PayBefore CurrentEarnings CurrentGross Pay UnemploymentCompensation SocialSecurity Carlson, David J. $6,635 $950 Delgado, Luisa 6,150 1,215 Lewis, Arlene S. 54,375 2,415 Nixon, Robert R. 53,870 1,750 Shippe, Lance W. 24,830 1,450 Watts, Brandon Q. 117,100 2,120 Payroll taxes expense 2 Social Security tax payable 2 3 Medicare tax payable 143.55 3 4 FUTA tax payable 7.29 4 5 SUTA tax payable 65.61 5 I need to figure the taxable social security earnings and the payroll tax expense.
Calculation of Taxable Earnings and Employer Payroll Taxes, and Preparation of Journal Entry 1. Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes. 2. Prepare the journal entry to record the employer's payroll taxes as of October 7, 20--. Round your answers to the nearest cent. If an amount box does not require an entry, leave it blank. Selected information from the payroll register of Howard's Cutlery for the week ended October 7, 20--, is presented below. Social Security tax is 6.2% on the first $118,500 of earnings for each employee. Medicare tax is 1.45% on gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings. Taxable Earnings Employee Name Cumulative PayBefore CurrentEarnings CurrentGross Pay UnemploymentCompensation SocialSecurity Carlson, David J. $6,635 $950 Delgado, Luisa 6,150 1,215 Lewis, Arlene S. 54,375 2,415 Nixon, Robert R. 53,870 1,750 Shippe, Lance W. 24,830 1,450 Watts, Brandon Q. 117,100 2,120 Payroll taxes expense 2 Social Security tax payable 2 3 Medicare tax payable 143.55 3 4 FUTA tax payable 7.29 4 5 SUTA tax payable 65.61 5 I need to figure the taxable social security earnings and the payroll tax expense.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculation of Taxable Earnings and Employer Payroll Taxes, and Preparation of
1. Calculate the amount of taxable earnings for
2. Prepare the journal entry to record the employer's payroll taxes as of October 7, 20--. Round your answers to the nearest cent. If an amount box does not require an entry, leave it blank.
Selected information from the payroll register of Howard's Cutlery for the week ended October 7, 20--, is presented below. Social Security tax is 6.2% on the first $118,500 of earnings for each employee. Medicare tax is 1.45% on gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings.
| Taxable Earnings | |||||
Employee Name |
Cumulative Pay Before Current Earnings |
Current Gross Pay |
Unemployment Compensation |
Social Security |
|
| Carlson, David J. | $6,635 | $950 | |||
| Delgado, Luisa | 6,150 | 1,215 | |||
| Lewis, Arlene S. | 54,375 | 2,415 | |||
| Nixon, Robert R. | 53,870 | 1,750 | |||
| Shippe, Lance W. | 24,830 | 1,450 | |||
| Watts, Brandon Q. | 117,100 | 2,120 |
| Payroll taxes expense | |||||||
| 2 | Social Security tax payable | 2 | |||||
| 3 | Medicare tax payable | 143.55 | 3 | ||||
| 4 | FUTA tax payable | 7.29 | 4 | ||||
| 5 | SUTA tax payable | 65.61 | 5 |
I need to figure the taxable social security earnings and the payroll tax expense.
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