Entries for Payroll and Payroll Taxes The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.: Salaries: Deductions: Sales salaries $275,000 Federal income tax withheld $99,616 Warehouse salaries 151,000 Social security tax withheld 33,960 Office salaries 140,000 Medicare tax withheld 8,490 $566,000 Retirement savings 12,452 Group insurance 10,188 $164,706 Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.6% Required: If an amount box does not require an entry, leave it blank. 1a. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30, to record the payroll. Date Account Debit Credit Dec. 30 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15 fill in the blank 17 fill in the blank 18 fill in the blank 20 fill in the blank 21 fill in the blank 23 fill in the blank 24 fill in the blank 26 fill in the blank 27 1b. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on 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 the year, $28,000 is subject to unemployment compensation taxes. Date Account Debit Credit Dec. 30 fill in the blank 29 fill in the blank 30 fill in the blank 32 fill in the blank 33 fill in the blank 35 fill in the blank 36 fill in the blank 38 fill in the blank 39 fill in the blank 41 fill in the blank 42 2a. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the entry on December 30, to record the payroll. Date Account Debit Credit Dec. 30 fill in the blank 44 fill in the blank 45 fill in the blank 47 fill in the blank 48 fill in the blank 50 fill in the blank 51 fill in the blank 53 fill in the blank 54 fill in the blank 56 fill in the blank 57 fill in the blank 59 fill in the blank 60 fill in the blank 62 fill in the blank 63 fill in the blank 65 fill in the blank 66 fill in the blank 68 fill in the blank 69 2b. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the entry to record the employer's payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $566,000 in salaries is subject to unemployment compensation taxes. Date Account Debit Credit Jan. 4 fill in the blank 71 fill in the blank 72 fill in the blank 74 fill in the blank 75 fill in the blank 77 fill in the blank 78 fill in the blank 80 fill in the blank 81 fill in the blank 83 fill in the blank 84
Entries for Payroll and Payroll Taxes
The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.:
| Salaries: | Deductions: | |||||
| Sales salaries | $275,000 | Federal income tax withheld | $99,616 | |||
| Warehouse salaries | 151,000 | Social security tax withheld | 33,960 | |||
| Office salaries | 140,000 | Medicare tax withheld | 8,490 | |||
| $566,000 | Retirement savings | 12,452 | ||||
| Group insurance | 10,188 | |||||
| $164,706 |
| Tax rates assumed: | |
| Social security, 6% | |
| Medicare, 1.5% | |
| State |
|
| Federal unemployment (employer only), 0.6% |
Required:
If an amount box does not require an entry, leave it blank.
1a. Assuming that the payroll for the last week of the year is to be paid on December 31,
| Date | Account | Debit | Credit |
|---|---|---|---|
| Dec. 30 | fill in the blank 2 | fill in the blank 3 | |
| fill in the blank 5 | fill in the blank 6 | ||
| fill in the blank 8 | fill in the blank 9 | ||
| fill in the blank 11 | fill in the blank 12 | ||
| fill in the blank 14 | fill in the blank 15 | ||
| fill in the blank 17 | fill in the blank 18 | ||
| fill in the blank 20 | fill in the blank 21 | ||
| fill in the blank 23 | fill in the blank 24 | ||
| fill in the blank 26 | fill in the blank 27 |
1b. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on 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 the year, $28,000 is subject to unemployment compensation taxes.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Dec. 30 | fill in the blank 29 | fill in the blank 30 | |
| fill in the blank 32 | fill in the blank 33 | ||
| fill in the blank 35 | fill in the blank 36 | ||
| fill in the blank 38 | fill in the blank 39 | ||
| fill in the blank 41 | fill in the blank 42 |
2a. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the entry on December 30, to record the payroll.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Dec. 30 | fill in the blank 44 | fill in the blank 45 | |
| fill in the blank 47 | fill in the blank 48 | ||
| fill in the blank 50 | fill in the blank 51 | ||
| fill in the blank 53 | fill in the blank 54 | ||
| fill in the blank 56 | fill in the blank 57 | ||
| fill in the blank 59 | fill in the blank 60 | ||
| fill in the blank 62 | fill in the blank 63 | ||
| fill in the blank 65 | fill in the blank 66 | ||
| fill in the blank 68 | fill in the blank 69 |
2b. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the entry to record the employer's payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $566,000 in salaries is subject to unemployment compensation taxes.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Jan. 4 | fill in the blank 71 | fill in the blank 72 | |
| fill in the blank 74 | fill in the blank 75 | ||
| fill in the blank 77 | fill in the blank 78 | ||
| fill in the blank 80 | fill in the blank 81 | ||
| fill in the blank 83 | fill in the blank 84 |
Wages: Wages are the earnings of the employees for their work to the company they serve. These are the expenses to the company.
Gross pay: It is the total amount of wages earned by employees without deducting any taxes or withholdings. This includes both gross pay and net pay.
Net pay: It is the amount of wages paid after deducting all the taxes and withholdings from the gross pay.
Social security tax: It is the tax levied by the federal government for funding the retirement, disability, and survival benefits for unemployed persons. Both the employer and employee pay the social security tax at a prescribed rate by the federal government.
Medicare tax: It is the tax levied by the federal government for funding the Medicare hospital insurance program. Both the employee and employer pay the Medicare tax at a prescribed rate by the federal government.
Income tax: It is the tax levied by the federal government on the income earned by individuals, corporations and corporations etc in a financial year generally say tax year.
State unemployment tax: It is a type of payroll tax which is required by the employers to pay on behalf of the employees to the state government at a rate fixed by the statute.
Federal unemployment tax: It is the tax collected by the federal government and allocates the proceeds to fund state unemployment agencies.
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