Calculation of Taxable Earnings and Employer Payroll Taxesand Preparation of Journal EntrySelected information from the payroll register of Joanie'sBoutique for the week ended September 14, 20--, is asfollows: Social Security tax is 6.2% on the first $128,400 ofearnings for each employee. Medicare tax is 1.45% of grossearnings. FUTA tax is 0.6% and SUTA tax is 5.4% on thefirst $7,000 of earnings.Taxable EarningsCumulative PayBefore CurrentCurrent UnemploymentSocialEmployee NameEarningsGross Pay CompensationSecurityJordahl, Stephanie$6,480$1,210Keesling, Emily6,1101,100Palmer, Stefan55,3102,390Soltis, Robin54,4102,270Stout, Hannah29,1302,010Xia, Xu127,4003,5201. Calculate the amount of taxable earnings forunemployment, Social Security, and Medicare taxes.Taxable EarningsCurrentUnemploymentSocialEmployee NameEarningsCompensationSecurityJordahl, Stephanie $Keesling, EmilyPalmer, StefanSoltis, RobinStout, HannahXia, XuTotal$Social Security taxMedicare taxFUTA taxSUTA taxTotal employer payroll taxes2. Prepare the journal entry to record the employer'spayroll taxes as of September 14, 20--.Page:DOC. POST.DATEACCOUNT TITIEDEBITCREDIT September 14, 20--, is as follows: Social Security tax is 6.2% on the first $128,400 ofearnings for each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is 0.6%and SUTA tax is 5.4% on the first $7,000 of earnings.Taxable EarningsCumulative PayBefore CurrentCurrent UnemploymentSocialEmployee NameEarningsGross Pay Compensation SecurityJordahl, Stephanie$6,480$1,210Keesling, Emily6,1101,100Palmer, Stefan55,3102,390Soltis, Robin54,4102,270Stout, Hannah29,1302,010Xia, Xu127,4003,5201. Calculate the amount of taxable earnings for unemployment, Social Security, andMedicare taxes.Taxable EarningsCurrent UnemploymentSocialEmployee Name Earnings Compensation SecurityJordahl, Stephanie $Keesling, EmilyPalmer, StefanSoltis, RobinStout, HannahXia, XuTotalSocial Security tax$4Medicare taxFUTA taxSUTA taxTotal employer payroll taxes $2. Prepare the journal entry to record the employer's payroll taxes as of September 14,20--.Page:DOC. POST.NO. REF.DATEACCOUNT TITLEDEBIT CREDIT20--1Sept. 14122.344

Payroll It is important for the business to maintain the payroll system which is important for both…

Calculation of Taxable Earnings and Employer Payroll Taxes and Preparation of Journal Entry Selected information from the payroll register of Joanie's Boutique for the week ended September 14, 20--, is as follows: Social Security tax is 6.2% on the first $128,400 of earnings for each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings. Taxable Earnings

Calculation of Taxable Earnings and Employer Payroll Taxes and Preparation of Journal Entry Selected information from the payroll register of Joanie's Boutique for the week ended September 14, 20--, is as follows: Social Security tax is 6.2% on the first $128,400 of earnings for each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings. Taxable Earnings

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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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 September 14, 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 Joanie's Boutique for the week ended September 14, 20--, is as follows. Social Security tax is 6.2% on the first $118,500 of earnings for each employee. Medicare tax is 1.45% of 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 Jordahl, Stephanie $6,600 $1,190 Keesling, Emily 6,150 1,070 Palmer, Stefan 55,200 2,410 Soltis, Robin…
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