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 ifhis cumulative earnings for the year are $46,910. Besides being subject to social security taxes and federal income tax (supplemental rate), a4.95% 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 getnet 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 availablefor publication. For this edition, the 2023 federal income tax tables for Manual Systems with Forms W-4 From 2020 or Later withStandard Withholding and 2023 FICA rates have been used.Gross bonus amountFederal income tax withheldOASDI tax withheldHI tax withheldUtah income tax withheldTake-home bonus check

Given Information:Net bonus check desired: $475.00Cumulative earnings for the year: $46,910Tax…

Answered: Damerly Company (a Utah employer) wants…

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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Mark Turney owns Creative Corners. He does his banking at United Federal Bank (UFB) in Tucson, Arizona. The amounts in his general ledger for payroll taxes and the employee's withholding of Social Security, Medicare, and federal income tax as of April 15 of the current year show the following: Social Security tax payable (employer and employee), $3,020; Medicare tax payable (employer and employee), $734; FUTA tax payable, $84; SUTA tax payable, $414; and Employees income tax payable, $4,622. Journalize the payment of the Form 941 deposit to UFB and thepayment of the SUTA tax to the State of Arizona as of April 15, 20--. NOTE: PREPARE YOUR JOURNAL ENTRIES IN PROPER FORMAT - OTHERWISE YOU WILL NOT RECEIVE CREDIT
Assume that the MUST Co. pays a weekly payroll. Using the portion of the Wage Bracket Withholding Table given, what would be the amount of federal income tax to withhold for this pay period for a single employee whose gross earning is $2,250 and who counted 2 withholding allowance? Table for Percentage Method of Withholding WEEKLY Payroll Period SINGLE person(including head of household)-- Assume the deduction for each withholding allowance is $75. If the amount of wages (after subtracting withholding allowances) is: The amount of income tax to withhold is $0 Not over $43. . . ver--- But not over-- of excess over-- $43 --$222 | $ 0.00 plus 10% ---$43 $222 ---$767 $17.90 plus 15% --$222 $767 --$1,796| $99.65 plus 25% ---$767 $1,796 --$3,700 $356.90 plus 28% ---$1,796 $3,700 ---87,992 | $890.12 plus 33% --S3,700 $7,992 ---$8,025 | $2,306.38 plus 35% ---$7,992 $8,025 $2,317.93 plus 39.6% ---$8,025 $356.90 $442.02 $484.02 $630.00
What will be the total deduction for social security and Medicare taxes on Rony's next semimonthly paycheck of $3,360.00, if she has already earned $48,560.00 this year? (Social security tax is 6.2% of gross wages up to $128,400. Medicare tax is 1.45% of all gross wages.) O $218.79 O $226.44 O$241.74 $257.04
(18) Mary Matthews made $1,150 during a biweekly pay period only social security (fully taxable) and federal income taxes attach to her pay. Matthews contributes $100 each biweekly pay to her company's 401k. Determine Matthews take home pay if she is married filing jointly. (Use Wage Bracket Method) Round your answer to two decimal place.
! Required information [The following information applies to the questions displayed below.] Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,000. Determine the amount Clyde should include in his gross income this year under the following circumstances. (Leave no answer blank. Enter zero if applicable.) c. Paylate Corporation mailed the check to Clyde before the end of the year (and it was delivered before year-end). Although Clyde expected the bonus payment, he decided not to collect his mail until after year-end. Amount to be included in gross income
Ann hires a nanny to watch her two children while she works at a local hospital. She pays the 19-year-old nanny $170 per week for 42 weeks during the current year. Do not round immediate computations and round your final answers to two decimal places. a. What is the employer's portion of Social Security and Medicare tax for the nanny that Ann should pay when she files her Form 1040 for 2018?$ b. What is the nanny's portion of the Social Security and Medicare tax?$
Susan Cain is employed at Quiet Inc. and is paid a monthly salary of ₱70,000. How much is her net pay after deducting all the mandatory deductions? (Provide solution/ explanation)
National incurred payroll tax expense on White for FICA tax. The company also paid state unemployment tax and federal unemployment tax. O (Click the icon to view payroll tax rate information.) Logan White is general manager of National Salons. During 2024, White worked for the company all year at a $14,200 monthly salary. He also earmed a year-end bonus equal to 5% of his annual salary. White's federal income tax withheld during 2024 was $1,420 per month, plus $2,726 on his bonus check. State income tax withheld came to $90 per month, plus $80 on the bonus. FICA tax was withheld on the annual earnings. White authorized the following payroll deductions: Charity Fund contribution of 3% of total earnings and life insurance of $25 per month. Read the reauirermenta. 378 Stato Unemployment Taxos Payablo Requirement 5. Make the journal entry for the payment of the payroll withholdings and taxes. (Record debits first, then credits. Exclude explanations from joumal entries.) Debit Credit Date…
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.
8.Determine when each of the following must deposit its Form 941 tax liabilities. Quikstep, a monthly depositor, pays employees on Friday. The total 941 deposit obligation for wages paid on April 17, 2020, is $2,400. Slowque, a monthly depositor, pays employees on Friday. Its total 941 deposit obligation for wages paid on September 4, 2020, is $2,000. BigTime, a semiweekly depositor, pays employees on Friday. BigTime’s 941 deposit obligation for wages paid on Friday, July 3, 2020, is $12,400. Lopez & Sons, a monthly depositor, pays employees on the 15th and last day of the month. Its 941 deposit obligation for wages paid on June 26, 2020, is $112,400.
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.
There is a cap on the amount that an employee or employer has to pay for Social Security contributions. The cap for the 2023 tax year is $9,932.40. How much money would someone have to earn for that amount to be 6.2% of their income?

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