**Educational Website Text: Lemur Corp. Year-End Bonus and Tax Withholding Information**Lemur Corp. is set to distribute year-end bonuses to three employees. The details of the bonuses and federal income tax withholding are provided below.### Employee Bonus and Withholding Information:| Employee | Filing Status | Allowances | Gross Income | Federal Income Withholding ||----------|---------------|------------|--------------|----------------------------|| Sarah | Married | 4 | $10,000 | $962 || Joe | Single | 2 | $8,000 | $1,362 || Kevin | Single | 1 | $7,000 | $357 |### Payroll Deductions:Lemur's payroll includes several deductions:- **FICA Social Security**: 6.2%- **FICA Medicare**: 1.45%- **FUTA (Federal Unemployment Tax Act)**: 0.6%- **SUTA (State Unemployment Tax Act)**: 5.4%- **Federal Income Tax**: Shown as above- **State Income Tax**: 5% of gross pay- **401(k) Employee Contributions**: 2% of gross pay### Instructions for Payroll Entry:Record the entry for the employee payroll on December 31. Round your answers to the nearest whole dollar where necessary. If an amount box does not require an entry, please leave it blank.**Note:** A table is presented in the image for the payroll entry on December 31 with various fields for data entry. Each row likely corresponds to deductions or employer responsibilities needing calculation based on provided percentages and figures.

Tax liability is the total amount of tax debt owed to government by an individual, corporation or…

Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and the amount of federal income tax withholding are as follows. Federal Gross Income Employee Filing Status Allowances Income Withholding Sarah $10,000 $962 $1,362 Joe $8,000 $7,000 Kevin $357 Lemur's payroll deductions include FICA Social Security at 6.2%, FICA Medicare at 1.45%, FUTA at 0.6%, SUTA at 5.4%, federal income tax as previously shown, state income tax at 5% of gross pay, and 401(k) employee contributions at 2% of gross pay. Record the entry for the employee payroll on December 31. If required, round your answers to the nearest whole dollar. If an amount box does not require an entry, leave it blank. Dec. 31 Married Single Single 4 1

Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and the amount of federal income tax withholding are as follows. Federal Gross Income Employee Filing Status Allowances Income Withholding Sarah $10,000 $962 $1,362 Joe $8,000 $7,000 Kevin $357 Lemur's payroll deductions include FICA Social Security at 6.2%, FICA Medicare at 1.45%, FUTA at 0.6%, SUTA at 5.4%, federal income tax as previously shown, state income tax at 5% of gross pay, and 401(k) employee contributions at 2% of gross pay. Record the entry for the employee payroll on December 31. If required, round your answers to the nearest whole dollar. If an amount box does not require an entry, leave it blank. Dec. 31 Married Single Single 4 1

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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An employee earned $45,400 during the year working for an employer when the maximum limit for Social Security was $118,500. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee's annual FICA taxes amount is:
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Vicky Le, an employee of Sweet Shoppe Industries, receives a bonus of $3,700 for her stellar work. Her boss wants Vicky to receive $3,700 on the check. She contributes 3 percent of her pay in a pre-tax deduction to her 401(k).Required:Calculate the gross pay amount that would result in $3,700 paid to Vicky. (The tax rate on bonuses is 22 percent. Social Security (6.2%) and Medicare taxes (1.45%) must be added to this rate.) (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
1
An employee earned $43,300 working for an employer in the current year. The current rate for Federal Insurance Contributions Act (FICA) Social Security is 6.2% payable on earnings up to $137,700 maximum per year, and the rate for Federal Insurance Contributions Act (FICA) Medicare 1.45%. The employer's total Federal Insurance Contributions Act (FICA) payroll tax for this employee is: Multiple Choice O $7.221.60 $3,312.45 $10,534.05 $2.684 60
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Employee AA is paid monthly. For the month of January, she earned a total of $8,260. The tax for social security is 6.2% of the first $128,400 of employee earnings each calendar year and the tax rate for Medicare is 1.45% of all earnings. The FUTA tax rate of .6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from Employee AA’s earnings was $1,325.17. Employee AA’s net pay for the month is:
Damerly Company (a Utah employer) wants to give a holiday bonus check of $325 to each employee. Since it wants the check amount to be $325, 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. Enter deductions beginning with a minus sign (-). You may need to adjust by a penny (subtract or add) to the gross amount to get net pay to calculate exactly to $325.00. Round your calculations and final answers to the nearest cent. As we go to press, the federal income tax rates for 2021 are being determined by budget talks in Washington and not available for publication. For this edition, the 2020 federal income tax tables for Manual Systems with Forms W-4 from 2020 or later with Standard Withholding…
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