Journalize the payment of wages, and record the payroll taxes, assuming that the contribution of the employer and employees are recorded in one account, Suta taxes payable.
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- Karlson Software Company is located in State H, which enables employers to reduce their contribution rates under the experience-rating system. From 2007 to 2016, inclusive, the company's total contributions to state unemployment compensation amounted to $14,695. For the calendar years 2017 to 2020, inclusive, the contribution rate for Karlson was 2.7%. The contributions of each employer are credited to an account maintained by the State Unemployment Compensation Commission. This account is credited with contributions paid into the account by the employer and is charged with unemployment benefits that are paid from the account. Starting January 1, 2021, the contributions rate for all employers in State H will be based on the following tax rate schedule: Reserve Ratio Contribution Rate Contributions falling below benefits paid 7.0% 0.0% to 7.9% 5.5% 8.0% to 9.9% 4.5% 10.0% to 11.9% 3.5% 12.0% to 14.9% 2.5% 15.0% or more 1.5% The annual payroll for calculation purposes…An employee receives a bi-weekly gross salary of $2,000. The employee’s deductions include income tax of $218, CPP of $99, EI of $36, and union dues of $50. The employer’s share of the deductions includes CPP of $139 and EI of $36. What is the total amount of salaries and employee benefits expense that X Corp. would record on its income statement as a result of the employee's bi-weekly salary? answers a. $1,597 b. $1,772 c. $2,000 d. $2,175The November 2019 payroll of Walnut Company is $17,500,000, of which $2,150,000 is exempt from Social Security tax because it represented amounts paid to certain employees in excess of $132,900. The amount paid to employees in excess of $7,000 was $16,980,000. Amounts withheld by Walnut were $3,080,000 for federal income taxes, $871,000 for state income taxes, $475,000 in charitable contributions, and $620,000 for 401-K employee contributions. Walnut’s effective state unemployment tax rate is 1.1% and the effective federal unemployment tax rate 0.6%. Prepare the journal entries Walnut should make to reflect its payroll expense and its payroll taxes expense.
- DIRECTIONS: Taxable earnings should be computed on the basis of a 40-hour week with overtime earnings being paid at time and one-half for all hours over 40 each workweek (no overtime for salaried employees). All employees' wages are subject to the OASDI tax of 6.2% and the HI tax of 1.45%. The supplemental HI rate of 0.9% is not applicable. Click here to access the Left Side of Payroll Register Table Use the partial wage-bracket tables provided to determine the amount of federal income tax to be withheld. For the salaried employees (#32 and #10), use the percentage method table. All workers are employed in a state that imposes a 2% income tax on the gross wages earned by each worker. Click here to access the Percentage Method Tables. Click here to access the Wage-Bracket Method Tables. If an amount box does not require an entry, enter "0". Round your answers to 2 decimal places. If problem PR.04.31AT wasn't assigned, you will first need to use the link to the left side of the payroll…NoneDuring the month of March, Sandhill Company's employees earned wages of $79,000. Withholdings related to these wages were $6,044 for Social Security (FICA), $13,100 for federal income tax, $5,500 for state income tax, and $530 for union dues. The company incurred no cost related to these earnings for federal unemployment tax, but incurred $1,140 for state unemployment tax. (a) Prepare the necessary March 31 journal entry to record wages expense and wages payable. Assume that wages earned during March will be paid during April. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Mar. 31 Debit T Credit
- The payroll of Ivanhoe Company for September 2019 is as follows. Total payroll was $468,000, of which $104,000 is exempt from Social Security tax because it represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both federal and state unemployment tax) was $406,000. Income taxes in the amount of $76,500 were withheld, as was $9,800 in union dues. The state unemployment tax is 3.5%, but Ivanhoe Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee's wages to $128,400 and 1.45% in excess of $128,400. No employee for Ivanhoe makes more than $135,000. The federal unemployment tax rate is 0.8% after state credit. Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No…Vulcra, Inc., has a semimonthly payroll of $67,960 on September 15, 20--. The total payroll is taxable under FICA Taxes-HI; $63,780 is taxable under FICA Taxes-OASDI; and $10,250 is taxable under FUTA and SUTA. The state contribution rate for the company is 4.1%. The amount withheld for federal income taxes is $9,932. The amount withheld for state income taxes is $1,448. Journalize the payment of the wages, and record the payroll taxes on September 15. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. Account Debit Credit Payment of wages fill in the blank 64ee8a05df97fa2_2 fill in the blank 64ee8a05df97fa2_3 fill in the blank 64ee8a05df97fa2_5 fill in the blank 64ee8a05df97fa2_6 fill in the blank 64ee8a05df97fa2_8 fill in the blank 64ee8a05df97fa2_9 fill in the blank 64ee8a05df97fa2_11 fill in the blank 64ee8a05df97fa2_12 fill in the blank 64ee8a05df97fa2_14 fill in the blank…On January 15, the end of the first pay period of the year, North Company's employees earned $40,000 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $3,100 of federal income taxes, $593 of medical insurance deductions, and $230 of union dues. No employee earned more than $7,000 in this first period. Prepare the journal entry to record North Company's January 15 salaries expense and related liabilities. View transaction list Journal entry worksheet 1 Record the employee payroll for period. Note: Enter debits before credits. Date January 15 General Journal Debit Credit Record entry Clear entry View general journal
- In September, Manson Paint Corporation began operations in a state that requires new employers of one or more individuals to pay a state unemployment tax of 3.5% of the first $7,000 of wages paid to each employee. An analysis of the company's payroll for the year shows total wages paid of $180,260. The salaries of the president and the vice president of the company were $18, 400 and $15,000, respectively, for tife four-month period, but there were no other employees who received wages in excess of $7,000 for the four months. Included in the total wages were $810 paid to a director who only attended director meetings during the year, S6, 450 paid to the factory superintendent, and $2,050 in employee contributions to a cafeteria plan made on a pretax basis for both federal and state. In addition to the total wages of $180,260, a payment of $2,580 was made to Andersen Accounting Company for an audit it performed on the company's books in December. Compute the following, round your answers…The employees of Boggus Ford earn wages of $15,600 for two weeks ending April 12. FIT taxes are $424 were withheld. The entire amount of wages is subject to the FICA taxes, BUT only $10,800 is taxable under the federal and state unemployment compensation laws. The state contribution rate of the employer is 3.9%. All employees are subject to state unemployment contribution rate of 0.5% on the April taxabe wages of $10,800, and the employees' contributions are to deducted by the employer. JOURNALIZE the payment of the wages, and record the payroll taxes, assuming the contributions of the employer and the employees are recorded in one account, SUTA taxes Payable. USE a table to correctly format the journal entries OR use Word to indent CR entries.The payroll of Novak Company for September 2019 is as follows.Total payroll was $454,000, of which $122,000 is exempt from Social Security tax because it represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both federal and state unemployment tax) was $399,000. Income taxes in the amount of $73,400 were withheld, as was $9,800 in union dues. The state unemployment tax is 3.5%, but Novak Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee’s wages to $128,400 and 1.45% in excess of $128,400. No employee for Novakmakes more than $135,000. The federal unemployment tax rate is 0.8% after state credit.Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately.
