Marc & Associates employs Janet Evanovich at its law firm and June is the first pay period for Janet. Her gross income for June is $7,500. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to the employee. Payroll for the month of June follows: FICA Social Security tax rate at 6.2%, FICA Medicare tax rate at 1.45%, federal income tax of $650, state income tax of $60, local income tax of $30, health-care insurance premium of $300, pension plan contribution of $200, and donations to a charity of $50. The employee is responsible for covering 40% of her health insurance premium. The employer is responsible for 60% of the health insurance premium. The employer matches 50% of employee pension plan contributions.
Marc & Associates employs Janet Evanovich at its law firm and June is the first pay period for Janet. Her gross income for June is $7,500. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to the employee. Payroll for the month of June follows: FICA Social Security tax rate at 6.2%, FICA Medicare tax rate at 1.45%, federal income tax of $650, state income tax of $60, local income tax of $30, health-care insurance premium of $300, pension plan contribution of $200, and donations to a charity of $50. The employee is responsible for covering 40% of her health insurance premium. The employer is responsible for 60% of the health insurance premium. The employer matches 50% of employee pension plan contributions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Marc & Associates employs Janet Evanovich at its law firm and June is the first pay period for Janet. Her gross income for June is $7,500. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to the employee. Payroll for the month of June follows: FICA Social Security tax rate at 6.2%, FICA Medicare tax rate at 1.45%, federal income tax of $650, state income tax of $60, local income tax of $30, health-care insurance premium of $300, pension plan contribution of $200, and donations to a charity of $50. The employee is responsible for covering 40% of her health insurance premium. The employer is responsible for 60% of the health insurance premium. The employer matches 50% of employee pension plan contributions.
Transcribed Image Text:. Record the journal entry to recognize employee payroll for the month of June; dated June 30, 2017.
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• Record remittance of the employee's salary with cash on July 1.
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. Record the two journal entries for the employer payroll for the month of June, dated June 30, 2017.
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Record the two journal entries for the payment in cash of all employer liabilities only on July 1
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cord the two journal entries for the payment in cash of all employer liabilities only on July 1.
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