Employee earnings records for Sheffield Company reveal these gross earnings for four employees through the pay period of December15.J. Seligman$87,800L. Marshall $108,100R. Eby$106,400T. Olson$140,000For the pay period ending December 31, each employee's gross earnings is $5,100. The FICA tax rate is 7.65% on gross earnings of$132,900.Compute the FICA withholdings that should be made for each employee for the December 31 pay period. (Round answers to 2 decimalplaces, e.g. 52.75.)J. Seligman. $L. Marshall$R. Eby$T. Olson

Step 1: Introduction to payroll taxesPayroll taxes refer to those taxes paid by both employer and…

Answered: Employee earnings records for Sheffield…

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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Alpine Company pays its employees time-and-a-half for hours worked in excess of 40 per week. The information available from time cards and employees’ individual earnings records for the pay period ended October 14 is shown in the following chart: Earnings at End Daily Time Income Tax Name of Previous Week M T W T F S Pay Rate Allowances or Amount Bardin, J. 43,627.00 8 8 8 8 8 2 21.30 2 Caris, A. 44,340.00 8 8 8 8 8 8 21.60 1 Drew, W. 43,845.00 8 10 10 8 8 0 21.50 1 Garen, S. 117,600.00 8 8 8 8 8 0 49.00 $227.83 North, O. 43,875.00 8 8 8 8 8 5 21.40 3 Ovid, N. 40,150.00 8 8 8 8 8 0 21.50 1 Ross, J. 6,430.00 8 8 8 8 8 4 20.50 1 Springer, O. 44,175.00 8 8 8 8 8 3 21.25 2 Taxable earnings for Social Security are based on the first $118,500. Taxable earnings for Medicare are based on all earnings. Taxable earnings for federal and state unemployment are based on the first $7,000. *Round to the nearest penny. Required: 1. Complete the payroll register…
Mest Company has nine employees. FICA Social Security taxes are 6.2% of the first $128,400 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. Cumulative pay for the current year for each of its employees follows. Employee Cumulative Pay Ken S $5,000 Tim V Steve S 43,400 90,000 Employee Michelle W Michael M. Zach R Cumulative Pay $146,500 109,900 131,400 Employee Lori K Kitty O John W Cumulative Pay $133,900 39,900 7,000 a. Compute the amounts in this table for each employee. b. For the company, compute each total for FICA Social Security taxes, FICA Medicare taxes, FUTA taxes, and SUTA taxes.
Figure 6.1 The form below shows the amounts that appear in the Earnings to Date column of the employees' earnings records for 10 full- and part-time workers in Unger Company. These amounts represent the cumulative earnings for each worker as of October 4, the company's last payday. The form also gives the gross amount of earnings to be paid each worker on the next payday, October 11. In the state where Unger Company is located, the tax rates and bases are as follows: Tax on Employees: FICA—OASDI 6.2% on first $137,700 FICA—HI 1.45% on total earnings SUTA 0.5% on first $8,000 Tax on Employer: FICA—OASDI 6.2% on first $137,700 FICA—HI 1.45% on total earnings FUTA 0.6% on first $7,000 SUTA 1.8% on first $8,000 In the appropriate columns of the form shown below, do the following: 1. Compute the amount to be withheld from each employee's earnings on October 11 for (a) FICA—OASDI, (b) FICA—HI, and (c) SUTA, and determine the total employee taxes.2.…
On January 14, at the end of the second week of the year, the totals of Castle Company's payroll register showed that its store employees' wages amounted to $40,660 and that its warehouse wages amounted to $12,600. Withholdings consisted of federal income taxes, $6,391, employer's Social Security taxes at the rate of 6.2 percent, and employees' Social Security taxes at a rate of 6.2 percent. Both the employer's and employees' Social Security taxes are based on the first $118,500, and no employee has reached the limit. Additional withholdings were Medicare taxes at the rate of 1.45 percent on all earnings and charitable contributions withheld, $720. Required: a. Calculate the amount of Social Security and Medicare taxes to be withheld and prepare the general journal entry to record the payroll. If an amount box does not require an entry, leave it blank. If required, round your intermediate calculations and final answers to the nearest cent and use the rounded answers in…
A company's payroll for the month ended January 31 is summarized as follows: Total wages Federal income tax withheld FICA taxes (employee portion withheld) FICA taxes (employer portion) $10,000 $1,200 $700 $700 The company remits payroll taxes on the 15th of the following month. In its financial statements for the month ended January 31, what amounts should the company report as total payroll tax liability and as payroll tax expense? O Payroll tax liability: $1,400; Payroll tax expense: $700 O Payroll tax liability: $1,900; Payroll tax expense: $1,400 O Payroll tax liability: $2,600; Payroll tax expense: $700 O Payroll tax liability: $1,900; Payroll tax expense: $700 O Payroll tax liability: $1,200; Payroll tax expense: $1,400
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The following information about the payroll for the week ended December 30 was obtained from the records of Pharrell Co.: Salaries: Sales salaries $350,000 Warehouse salaries 182,000 Office salaries 136,000 $668,000 Deductions: Federal income tax withheld $117,000 Social security tax withheld 40,080 Medicare tax withheld 10,020 Retirement savings 14,696 Group insurance 12,024 $193,820 Tax rates assumed: Social security 6% Medicare 1.5% State unemployment (employer only) 5.4% Federal unemployment (employer only) 0.6% Required: equired: 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the chart of accounts for the exact wording of the account titles. a. December 30, to record the payroll. b. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of…
Employee net pay Lindsey Vater's weekly gross earnings for the week ended March 9 were $1,200, and her federal income tax withholding was $193.44. Assuming the social security tax rate is 6% and Medicare tax is 1.5% of all earnings, what is Lindsey's net pay? For interim computations, carry amounts out to two decimal places. Round your final answer to two decimal places.
Paloma Company has four employees. FICA Social Security taxes are 6.2% of the first $137,700 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, for the first $7,000 paid to each employee, the company's FUTA taxes are 0.6% and SUTA taxes are 5.4%. The company is preparing its payroll calculations for the week ended August 25. Payroll records show the following information for the company's four employees. Current Week Gross Pay through August 18 $ 124,200 134,300 9,000 2,950 Income Tax Name Gross Pay $ 4,700 3,400 1,600 1,000 Withholding $ 554 Dali Trey Kiesha 306 55 Chee 44 In addition to gross pay, the company must pay one-half of the $98 per employee weekly health insurance; each employee pays the remaining one-half. The company also contributes an extra 8% of each employee's gross pay (at no cost to employees) to a pension fund. Required: Compute the following for the week ended August 25. (Round your intermediate calculations and final answers to 2 decimal…
Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay period of January 15–31. Gross payroll $18,729 Federal income tax withheld $3,167 Social security rate 6% Federal unemployment tax rate 0.8% Medicare rate 1.5% State unemployment tax rate 5.4% Salaries Payable would be recorded in the amount of a.$12,996.13 b.$14,400.80 c.$14,157.33 d.$18,729.00
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $117,000 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 2.9% of the first $7,000 paid to its employee. a. Gross Pay through August $ 6,400 Gross Pay for September $ 800 Prepare the employer's September 30 journal entries to record the employer's payroll taxes expense and its related liabilities. (Round your answers to 2 decimal places.) Employer Payroll taxes September earnings subject to tax Tax Rate Tax Amount 0.00
XYZ Company is processing payroll for the week ending January 9th. Employee earnings total $5,000. Federal income tax withheld from employee paychecks totaled $1,100. The social security tax rate is 6%, the Medicare tax rate is 1.5%, the state unemployment tax rate is 5.4% and the federal unemployment tax rate is .8%. a) Journalize the payroll entry for the week. DATE Debit Credit X/X b) Journalize the payroll tax entry for the week. DATE Debit Credit X/X

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