**Scenario: Salary and Payroll Deductions for Lee Werner**Lee Werner is the general manager of Stoneybrook Salons. In 2024, Werner worked for the company all year, earning a $12,900 monthly salary. Additionally, he received a year-end bonus that equaled 20% of his annual salary.**Federal and State Tax Deductions:**- Federal income tax withheld: $4,128 per month- Bonus check: $6,811- State income tax: $120 per month, $80 for the bonus- FICA tax withheld on annual earningsWerner authorized payroll deductions for a Charity Fund (4% of total earnings) and life insurance ($50 per month).**Employer's Payroll Tax Expenses:**Stoneybrook incurred FICA tax expenses and paid state and federal unemployment taxes for Werner.**Tax Rates for Payroll Calculations:**- **Employee:** - OASDI: 6.2% on first $132,900 earned - Medicare: 1.45% up to $200,000 and 2.35% on earnings above $200,000- **Employer:** - OASDI: Same as employee - Medicare: 1.45% - FUTA: 0.6% on first $7,000 earned - SUTA: 5.4% on first $7,000 earned**Requirements:**1. Compute Werner’s gross pay, payroll deductions, and net pay for 2024, rounding all amounts to the nearest dollar.2. Calculate Stoneybrook’s total 2024 payroll tax expense for Werner.3. Create journal entries for Stoneybrook’s expense on Werner’s total earnings, payroll deductions, and net pay.4. Record the accrual of Stoneybrook’s payroll tax expense for Werner’s total earnings.5. Make the journal entry for payment of payroll withholdings and taxes.**Interface Features:**Includes sections for entering gross pay, requirements and more info on tax rates, and buttons to print or confirm completion ("Done").

Gross salary is the amount of salary after totalling all the benefits and allowances but before…

Lee Werner is general manager of Stoneybrook Salons. During 2024, Werner worked for the company all year at a $12,900 monthly salary. He also earned a year-end bonus equal to 20% of his annual salary. Werner's federal income tax withheld during 2024 was $4,128 per month, plus $6,811 on his bonus check. State income tax withheld came to $120 per month, plus $80 on the bonus. FICA tax was withheld on the annual earnings. Werner authorized the following payroll deductions: Charity Fund contribution of 4% of total earnings and life insurance of $50 per month. Requirement 1. Compute Werner's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar. Begin by computing Werner's gross pay for the year. (Round all amounts to the nearest dollar.) Gross pay: Gross Pay Requirements 1. Compute Werner's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar. 2. Compute Stoneybrook's total 2024 payroll tax expense for Werner. 3. Make the journal entry to record Stoneybrook's expense for Werner's total earnings for the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus Expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required. 4. Make the journal entry to record the accrual of Stoneybrook's payroll tax expense for Werner's total earnings. 5. Make the journal entry for the payment of the payroll withholdings and taxes. Print Done More info Stoneybrook incurred payroll tax expense on Werner for FICA tax. The company also paid state unemployment tax and federal unemployment tax. i (Click the icon to view payroll tax rate information.) Read the requirements. For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. Print Done - X