d in arrears (That is, when the employees are paid, the salaries paid are for work performed in the preceding week). Hungry Ltd retains $4000 per week to pay the Australian Taxation Office for pay-as-you-go (PAYG) tax on behalf of the employees. This is paid on the following Monday of each week. It also retains $600 per week to pay staff premiums to the Organic Medical Benefits Fund. If we assume that the end of the reporting period falls on a Wednesday, what will be the accounting entry at the end of the accounting ye

d in arrears (That is, when the employees are paid, the salaries paid are for work performed in the preceding week). Hungry Ltd retains $4000 per week to pay the Australian Taxation Office for pay-as-you-go (PAYG) tax on behalf of the employees. This is paid on the following Monday of each week. It also retains $600 per week to pay staff premiums to the Organic Medical Benefits Fund. If we assume that the end of the reporting period falls on a Wednesday, what will be the accounting entry at the end of the accounting ye

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter4: Income Tax Withholding

Section: Chapter Questions

Problem 2QD

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Payrex Co. has six employees. All are paid on a weekly basis. For the payroll period ending January 7, total employee earnings were 12,500, all of which were subject to SUTA, FUTA, Social Security, and Medicare taxes. The SUTA tax rate in Payrexs state is 5.4%, but Payrex qualifies for a rate of 2.0% because of its good record of providing regular employment to its employees. Other employer payroll taxes are at the rates described in the chapter. REQUIRED 1. Calculate Payrexs FUTA, SUTA, Social Security, and Medicare taxes for the week ended January 7. 2. Prepare the journal entry for Payrexs payroll taxes for the week ended January 7. 3. What amount of payroll taxes did Payrex save because of its good employment record?
Trowbridge Company has just completed the processing of its year-end payroll and distributed all the weekly paychecks. The payroll department is now computing the amount of the annual bonus to be given each worker. What methods may be used by the company in determining the amount of federal income taxes to be withheld from the annual bonus payments?
XYZ Ltd employs its staff on a five-day work week, with employees being paid on Fridays. The weekly salaries expense is $12,000, and employees are paid in arrears. When the employees are paid, the salaries paid are for work performed in the preceding week. Thruster Ltd retains $3,500 per week to pay the Australian Taxation Office for PAYG tax on behalf of the employees. This is paid on the following Monday of each week. It also retains $700 per week to pay staff premiums to the Oceanic Medical Benefits Fund. Required: If we assume that the reporting date falls on a Thursday, what would the accounting entry at reporting date be to recognise four days' salary and wages expense? What would be the journal entry on when the wages are ultimately paid? What would be journal entry when the tax and medical benefits are paid to respective organisations?
Kenz Limited employs its staff on a five-day working week. The weekly salaries is $15,000 and employees are paid in arrears on Friday. That is, when the employees are paid, the salaries paid are for work performed in the preceding week. Kenz Limited retains $5,000 per week to pay the Inland Revenue Department for pay-as-you-earn (PAYE) tax on behalf of the employees and $1,000 per week to pay staff medical benefits. Tax and medical benefits are paid on the following Monday and Tuesday of each week respectively. The end of the reporting period falls on a Wednesday. RequiredPrepare the accounting entries necessary to record the salary on balance day and its payments.
Dainty Ltd has an average weekly payroll of $200 000. The employees are entitled to 2 weeks', non-vesting sick leave per annum. Past experience suggests that 56% of employees will take the full 2 weeks' sick leave and 22% will take 1 week's leave each year. The rest of the employees take no sick leave.Required:b) Provide the journal entry necessary to recognise the sick-leave entitlement expense as it accrues each week.
Dainty Ltd has an average weekly payroll of $200 000. The employees are entitled to 2 weeks', nonvesting sick leave per annum. Past experience suggests that 56% of employees will take the full 2 weeks' sick leave and 22% will take 1 week's leave each year. The rest of the employees take no sick leave.Provide the journal entry necessary to recognise the sick-leave entitlement expense as it accrues each week.
JYD Accounting Firm pays its employees at a rate of $50/hr. The tax and other deductions amount to 20% of monthly income in excess of $1,000 if an employee works 40 hours in 120 hours in a month. How much is the gross payroll?
Dainty Ltd has an average weekly payroll of $200 000. The employees are entitled to 2 weeks', non- vesting sick leave per annum. Past experience suggests that 56% of employees will take the full 2 weeks' sick leave and 22% will take 1 week's leave each year. The rest of the employees take no sick leave. Provide the journal entry necessary to recognise the sick-leave entitlement expense as it accrues each week.
JYD Accounting Firm pays its employees at a rate of $50/hr. The tax and other deductions amount to 20% of monthly income in excess of $1,000 if an employee works 40 hours in 120 hours in a month. Required: Compute the following: A. Gross Pay B. Net Pay
The following is a payroll sheet for Metlock Imports for the month of September. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $106,800. In addition, 1.45% is charged both employer and employee for an employee's wages in excess of $106,800 per employee. (a) Complete the payroll sheet. (Round answers to 2 decimal places, e.g. 15.26.) Name Jerry Kaye Jessie Randle Javier White Jeremy Taggle John Jay Joan Short Total $ Earnings to Aug. 31 $77,000 Account Titles and Explanation 104,000 5,700 125,000 42,600 4,000 $ September Earnings $15,000 16,000 800 23.000 Debit 7,300 1,500 $ $ Income Tax Withholding Make the necessary entry to record the payment of the payroll. (Round answers to 2 decimal places, e.g. 15.26. If no entry is required, select "No Entry" for the account…
JYD Accounting Firm pays its employees at a rate of $50/hr. The tax and other deductions amount to 20% of monthly income in excess of $1,000 if an employee works 40 hours in 120 hours in a month. How much is the net pay?
Win-Win company’s first weekly pay period of the year ends on January 8. On that date, the column totals in its payroll register show that sales employees earned $30,000 and office employees earned $20,000 in salaries. The employees are to have withheld from their salaries FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $9,000 of federal income taxes, $2,000 of medical insurance deductions, and $1,000 of pension contributions. No employee earned more than $7,000 in the first pay period. Required: Part 1a. Compute FICA--Social Security taxes payable and FICA--Medicare taxes payable. Part 1b. Prepare the journal entry to record Win-Win's January 8 (employee) payroll expenses and liabilities. (Round amounts to cents.) Part 2. Prepare the journal entry to record Win-Win's (employer) payroll taxes resulting from the January 8…