Critical Thinking 5-2 (Algo) Your boss approaches you in mid-December and requests that you pay certain employees their gross pay amount as if there were no deductions as their year-end bonuses. None of the employees have reached the Social Security wage base for the year and the company pays semimonthly. Required: What is the gross-up amount for each of the following employees? (The tax rate on bonuses is 22% and no state taxes. Social Security (6.2%) and Medicare taxes (1.45%) must be added to this rate.) Note: Round your intermediate calculations and final answers to 2 decimal places. Employee Onyx Saint John Indigo Johnson Zion Hale Answer is complete but not entirely correct. Grossed-up Amount $ $ $ Regular Gross Pay per Period 2,475 S S S 4,184.79 2,878.46 x 4,321.25 X 3,520 3,472

Critical Thinking 5-2 (Algo) Your boss approaches you in mid-December and requests that you pay certain employees their gross pay amount as if there were no deductions as their year-end bonuses. None of the employees have reached the Social Security wage base for the year and the company pays semimonthly. Required: What is the gross-up amount for each of the following employees? (The tax rate on bonuses is 22% and no state taxes. Social Security (6.2%) and Medicare taxes (1.45%) must be added to this rate.) Note: Round your intermediate calculations and final answers to 2 decimal places. Employee Onyx Saint John Indigo Johnson Zion Hale Answer is complete but not entirely correct. Grossed-up Amount $ $ $ Regular Gross Pay per Period 2,475 S S S 4,184.79 2,878.46 x 4,321.25 X 3,520 3,472

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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Example 3-1 During 20--, Rachael Lopez, president of Mathieson Company, was paid a semimonthly salary of $9,000. Compute the amount of FICA taxes that should be withheld from her. Note: Rachael's tax return status s single. If an amount is zero, enter "0". a. 9th paycheck b. 17th paycheck c. 22nd paycheck d. If Lopez's year-to-date earnings as of her 24th paycheck are $216,000, and her year-end bonus is $100,000, how much additional 0.9% HI tax would be deducted for the year? $ $ OASDI 558 186 ✓ 0 ✓ $ HI 1,044 ✔
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Damerly Company (a Utah employer) wants to give a holiday bonus check of $475 to each employee. Since it wants the check amount to be $475, it will need to gross-up the amount of the bonus. Calculate the withholding taxes and the gross amount of the bonus to be made to John Rolen if his cumulative earnings for the year are $46,910. Besides being subject to social security taxes and federal income tax (supplemental rate), a 4.95% Utah income tax must be withheld on supplemental payments. Enter deductions beginning with a minus sign (-). You may need to adjust by a penny (subtract or add) to the gross amount to get net pay to calculate exactly to $475.00. Round your calculations and final answers to the nearest cent. As we go to press, the federal income tax rates for 2024 are being determined by budget talks in Washington, and are not available for publication. For this edition, the 2023 federal income tax tables for Manual Systems with Forms W-4 From 2020 or Later with Standard…
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Between the end of one month and the 15th day of the next month, the balance in the employer's business bank account is getting smaller and smaller. An employee prepares the next payroll and correctly computes the necessary withholding taxes. The employer is supposed to pay accumulated employment taxes on the 15th of the next month. Payday is the last day of the month. However, the employer has used the funds withheld from employees to pay some of the business' bills. He hopes that enough of the customers owing money will pay their debts. If that happens, the checking account will have enough in it to pay the federal deposit on the 15th of the month. Is the employer acting ethically? After all, he says he intends to have the money in the account for the deposit.
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Can I do a general journal entry on this scenario, if so how do i do it? Master Flow’s first employee, Emma Stone starts at the Company. She will be responsible for Warehouse Management. She will be paid $20 / Hour. Emma works 30 Hours / Pay Period (every two weeks). The pay period ends on 12-31-20. Emma’s Federal Tax Withholding is $50, based on her W4, and all other standard payroll taxes apply at their appropriate rates. She does not receive benefits and does not have any contributions of any type withheld from her pay.
Damerly Company (a Utah employer) wants to give a holiday bonus check of $375 to each employee. Since it wants the check amount to be $375, it will need to gross-up the amount of the bonus. Calculate the withholding taxes and the gross amount of the bonus to be made to John Rolen if his cumulative earnings for the year are $46,910. Besides being subject to social security taxes and federal income tax (supplemental rate), a 4.95% Utah income tax must be withheld on supplemental payments.