Cracks of Dawns, a clothing resale store, employs one salesperson, Dia Hollace. Hollace's straight-time wage is $50 per hour, with time-and-a-half pay for hours above 40. Cracks of Dawns withholds income tax (20%), FICA-OASDI (6.2%), and FICA-Medicare (1.45%) from Hollace's pay. Cracks of Dawns also pays payroll taxes for FICA-OASDI (6.2%), FICA-Medicare (1.45%), and state and federal unemployment (5.4% and 0.69 respectively). During the week ended December 26, Hollace worked 44 hours. Prior to this week, she had earned $1,700. Read the requirements. Requirement 1. Compute Hollace's gross pay and net (take-home) pay for the week. Begin with the computation of gross pay. (Round all amounts to the nearest whole dollar.) Gross Pay: Gross Pay C Requirements (Round all amounts to the nearest dollar.) 1. Compute Hollace's gross pay and net (take-home) pay for the week. 2. Record the payroll entries that Cracks of Dawns would make for each of the following. a. Accrual of salaries and wages expense and subsequent payment related to Hollace b. Employer payroll taxes accrual related to Hollace c. Payment of all payroll taxes (employee and employer related) 3. How much was Cracks of Dawns' total payroll expense for the week? X

Cracks of Dawns, a clothing resale store, employs one salesperson, Dia Hollace. Hollace's straight-time wage is $50 per hour, with time-and-a-half pay for hours above 40. Cracks of Dawns withholds income tax (20%), FICA-OASDI (6.2%), and FICA-Medicare (1.45%) from Hollace's pay. Cracks of Dawns also pays payroll taxes for FICA-OASDI (6.2%), FICA-Medicare (1.45%), and state and federal unemployment (5.4% and 0.69 respectively). During the week ended December 26, Hollace worked 44 hours. Prior to this week, she had earned $1,700. Read the requirements. Requirement 1. Compute Hollace's gross pay and net (take-home) pay for the week. Begin with the computation of gross pay. (Round all amounts to the nearest whole dollar.) Gross Pay: Gross Pay C Requirements (Round all amounts to the nearest dollar.) 1. Compute Hollace's gross pay and net (take-home) pay for the week. 2. Record the payroll entries that Cracks of Dawns would make for each of the following. a. Accrual of salaries and wages expense and subsequent payment related to Hollace b. Employer payroll taxes accrual related to Hollace c. Payment of all payroll taxes (employee and employer related) 3. How much was Cracks of Dawns' total payroll expense for the week? X

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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Waterkraft rents canoes and other water crafts to campers and hikers. On April 15, 2020, Waterkraft prepared their semi- monthly payroll for their employees. The current CPP rate is 5.25%, the current El rate is 1.58%, and the appropriate income tax rate is 19%. The employer pays half of the health care premium, and the employees pay the other half. Assume the employer contributes 100% toward CPP and 140% toward El. Payroll information for April 15, 2020 is listed below. Employee Total Hours Hourly Rate Total Health Care M. Swift 79.0 $14.00 S. Current 71.0 $22.00 B. Wavey 71.0 $18.00 Do not enter dollar signs or commas in the input boxes. Round your answer to 2 decimal places. a) Calculate gross and net pay for each employee. Employee Gross $ M. Swift 1027 S. Current 1065 $ $13.00 $15.00 $16.00 $ Income Tax $ 195.13 $ 202.35 CPP* 53.92 x 27.96 X Payroll Register Deductions 16.23 16.83 ΕΙ $ $ $ Health Care 7 11 $ $ Total Deductions $ $ Net Pay 950.48 X LA
Deep Mouse Designs has 14 employees within Denver City and County. The employees earned $9.80 per hour and worked 160 hours each during the month. The employer must remit $4.00 per month per employee who earns more than $500 per month. Additionally, employees who earn more than $500 per month must have $5.75 withheld from their pay. Required: What is the employee and employer Occupational Privilege Tax for these employees? (Round your answers to 2 decimal places.)
Carbon Neutral Inc. has four employees who work on an hourly basis and are paid semi-monthly. The current CPP rate is 5.70%, the current EI rate is 1.58%, and the appropriate income tax rate is 15%. Each employee contributes a portion of their pay to the United Way. The employer pays the 50% of the amount of the health care premium for the employees. Assume the employer contributes 100% toward CPP and 140% toward EI. Payroll information for the week ending April 1, 2022, is listed below. Employee Total Hours Hourly Rate United Way Health Care May Bee 72.00 $13.50 $8.00 $16.00 See Eye 77.00 $14.00 $9.00 $22.00 Nose He 80.00 $14.50 $12.00 $24.00 Run Up 82.00 $15.50 $15.00 $24.00 Required: Calculate gross and net pay for each employee. Please remember to account for the CPP annual exemption of $3,500. Round your answers to 2 decimal places. Calculate the…
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BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. FICA - Social Security FICA Base FICA - Medicare Federal Unemployment Tax (FUTA) State Unemployment Tax (SUTA) Unemployment limit Situation FUTA SUTA FICA-Social Security FICA-Medicare a. b. C. Gross Pay through August 31 $6,400 2,000 131,400 6.2% $137,700 1.45% 0.6% 5.4% $7,000 Gross Pay for September Required: Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (c). Note: If no tax is due, no formula is required. 'Tax Situation a Situation b Situation c $800 2,100 8,000
Mandy Feng employs Jay Johnson at a salary of $35,000 a year. Feng is subject to employer Social Security taxes at a rate of 6.2% and Medicare taxes at a rate of 1.45% on Johnson's salary. In addition, Feng must pay SUTA tax at a rate of 5.4% and FUTA tax at a rate of 0.6% on the first $7,000 of Johnson's salary. Compute the total cost to Feng of employing Johnson for the year.
BMX Company has one employee.FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee.
Use the following information for the Exercises below. Skip to question [The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay throughAugust 31 Gross Pay forSeptember a. $ 6,400 $ 800 b. 2,000 2,100 c. 122,100 8,000 Exercise 11-6 Payroll-related journal entries LO P2 Assuming situation (a), prepare the employer’s September 30 journal entries to record salary expense and its related payroll liabilities for this employee. The employee’s federal income taxes withheld by the employer are $80 for this pay period.
Use the following information for the Exercises below. Skip to question [The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay throughAugust 31 Gross Pay forSeptember a. $ 6,400 $ 800 b. 2,000 2,100 c. 122,100 8,000 Exercise 11-7 Payroll-related journal entries LO P3 Assuming situation (a), prepare the employer’s September 30 journal entries to record the employer’s payroll taxes expense and its related liabilities.
Use the following information for the Exercises below. Skip to question [The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay throughAugust 31 Gross Pay forSeptember a. $ 6,400 $ 800 b. 2,000 2,100 c. 122,100 8,000 Exercise 11-5 Computing payroll taxes LO P2, P3 Compute BMX’s amounts for each of these four taxes as applied to the employee’s gross earnings for September under each of three separate situations (a), (b), and (c). (Round your answers to 2 decimal places.)
Geraldine Wolfe is a supervisor at Fantastigifts. She has an annual salary of $49,000, paid biweekly, and a garnishment for consumer credit of $470. Assuming that her disposable income is 80 percent of her gross pay per period, does the garnishment follow the CCPA? If not, what is the maximum garnishment allowed for Geraldine’s consumer credit garnishment? (Round your intermediate calculations and final answer to 2 decimal places.) Does the garnishment follows the CCPA Maximum garnishment allowed