On January 8, at the end of the first weekly pay period of the year, Regis Company's employees earned $21,760 in office salaries and $70,840 in sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at a rate of 6.2%, FICA Medicare taxes at 1.45%, $13,060 of federal income taxes, $1,410 of medical insurance deductions, and $800 of union dues. No employee earned more than $7,000 in this first period.**Required:**1. **1-a.** Calculate below the amounts for each of these four taxes of Regis Company. Regis's state unemployment tax rate is 5.4% on the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. 1. **1-b.** Prepare the journal entry to record Regis Company's January 8 employee payroll expenses and liabilities.2. Prepare the journal entry to record Regis’s employer payroll taxes resulting from the January 8 payroll. Regis’s state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%.**Complete this question by entering your answers in the tabs below.**- Req 1A- Req 1B- Req 2**Calculate below the amounts for each of these four taxes of Regis Company. Regis's state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%.***Note: Round your answers to 2 decimal places.*| Regis Company's: | January 8 Earnings Subject to Tax | Tax Rate | Tax Amount ||--------------------------|-----------------------------------|----------|------------|| FICA—Social Security | | | || FICA—Medicare | | | || FUTA | | | || SUTA | | | |**Graph/Diagram Explanation:**The table is designed to calculate the tax amounts based on specific tax rates. It includes columns for "Tax," "January 8 Earnings Subject to Tax," "Tax Rate," and "Tax Amount" for each category such as FICA (Social Security and Medicare), FUTA, and SUTA. The table guides users to input the

Payroll tax is the percentage of an employee's salary that an employer has to pay to the government.Calculation of FICA Taxes & Unemployment Taxes for Regis Company:Regis Company's:TaxJan 8 Earnings Subject to TaxTax RateTax AmountFICA-Social Security$92,6006.20%$5,741.20FICA - Medicare$92,6001.45%$1,342.70FUTA$92,6000.6%$555.60SUTA$92,6005.4%$5,000.40January 8 earnings subject to tax are multiplied by tax rate to compute tax amount.Journalizing the employee payroll expenses and liabilities:DateGeneral JournalDebitCreditJan 08Office Salaries Expense$21,760.00Sales Salaries Expense$70,840.00 FICA - Social Security Taxes Payable$5,741.20 FICA - Medicare Taxes Payable$1,342.70 Employee Federal Income Taxes Payable$13,060.00 Employee Medical Insurance Payable$1,410.00 Employee Union Dues Payable$800.00 Salaries Payable$70,246.10(To record salaries expense and payroll withholdings)Journalizing the employer's payroll tax expense & liabilities:DateGeneral JournalDebitCreditJan 08Payroll Taxes Expense$12,639.90 FICA - Social Security Taxes Payable$5,741.20 FICA - Medicare Taxes Payable$1,342.70 Federal Unemployment Taxes Payable$555.60 State Unemployment Taxes Payable$5,000.40(To record employer's payroll tax expense)Salaries payable = $70,246.10Payroll taxes expense = $12,639.90Both journal entries have been recorded in the above steps as per the instructions in the question.

Business

Accounting

On January 8, the end of the first weekly pay period of the year, Regis Company's employees earned $21,760 of office salaries $70,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FIC Medicare taxes at the rate of 1.45%, $13,060 of federal income taxes, $1,410 of medical insurance deductions, and $800 of uni No employee earned more than $7,000 in this first period. Required: -a. Calculate below the amounts for each of these four taxes of Regis Company. Regis's state unemployment tax rate is 5.4% irst $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. -b. Prepare the journal entry to record Regis Company's January 8 employee payroll expenses and liabilities. 2. Prepare the journal entry to record Regis's employer payroll taxes resulting from the January 8 payroll. Regis's state unempl ax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%.

On January 8, the end of the first weekly pay period of the year, Regis Company's employees earned $21,760 of office salaries $70,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FIC Medicare taxes at the rate of 1.45%, $13,060 of federal income taxes, $1,410 of medical insurance deductions, and $800 of uni No employee earned more than $7,000 in this first period. Required: -a. Calculate below the amounts for each of these four taxes of Regis Company. Regis's state unemployment tax rate is 5.4% irst $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. -b. Prepare the journal entry to record Regis Company's January 8 employee payroll expenses and liabilities. 2. Prepare the journal entry to record Regis's employer payroll taxes resulting from the January 8 payroll. Regis's state unempl ax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

During January, Luxury Cruise Lines Incurs employee salaries of $1.7 million. Withholdings in January are $130,050 for the employee portion of FICA, $255,000 for federal income tax, $106,250 for state income tax, and $17,000 for the employee portion of health insurance (payable to Blue Cross Blue Shield). The company incurs an additional $105,400 for federal and state unemployment tax and $51,000 for the employer portion of health insurance. Required: 1.-3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).) View transaction list View journal entry worksheet Record the employee salary expense, withholdings, and salaries payable. Record the employer provided fringe benefits. Record the employer payroll taxes. Nate journal entry has been entered EXI Debit…
Paloma Company has four employees. FICA Social Security taxes are 6.2% of the first $137,700 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, for the first $7,000 paid to each employee, the company's FUTA taxes are 0.6% and SUTA taxes are 5.4%. The company is preparing its payroll calculations for the week ended August 25. Payroll records show the following information for the company's four employees. Current Week Gross Pay through August 18 $ 124,200 134,300 9,000 2,950 Income Tax Name Gross Pay $ 4,700 3,400 1,600 1,000 Withholding $ 554 Dali Trey Kiesha 306 55 Chee 44 In addition to gross pay, the company must pay one-half of the $98 per employee weekly health insurance; each employee pays the remaining one-half. The company also contributes an extra 8% of each employee's gross pay (at no cost to employees) to a pension fund. Required: Compute the following for the week ended August 25. (Round your intermediate calculations and final answers to 2 decimal…
Nielson Corporation has three employees. Each employee is paid overtime at time and one-half after the first 40 hours worked for the week. The current social security and medicare taxes are 6.2% and 1.45% respectively. Social security tax is capped on the first $140,000 of annual wages. The current unemployment tax rates are 3% for state and 1% for federal on the first $8,000 of annual wages. Below is the payroll information for the first week of the new year (therefore, the annual wage caps will not apply). Employee Hourly Rate Hours Worked Federal W/H Rate Roth 401k Deduction Health Insurance United Way Susan W. 27 45 20% 120 150 5 George B. 25.25 50 20% 100 200 5 Maria M. 23 48 15% 75 125 5 a. Prepare a payroll register for the week's payroll (use the form provided to the right).…
[The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay through August 31 Gross Pay for September a. $ 6,000 $ 1,500 b. 2,000 2,100 c. 132,900 9,500 Exercise 11-9 (Algo) Payroll-related journal entries LO P3 Assuming situation (a), prepare the employer’s September 30 journal entry to record the employer’s payroll taxes expense and its related liabilities. Record the employer's September 30 payroll taxes expense and its related liabilities. Note: Enter debits before credits. Date General Journal Debit Credit September 30 Payroll taxes expense FICA—Social security taxes payable FICA—Medicare taxes payable Federal…
On January 14, at the end of the second week of the year, the totals of Castle Company's payroll register showed that its store employees' wages amounted to $33,482 and that its warehouse wages amounted to $13,560. Withholdings consisted of federal income taxes, $5,110, employer's Social Security taxes at the rate of 6.2 percent, and employees' Social Security taxes at a rate of 6.2 percent. Both the employer's and employees' Social Security taxes are based on the first $118,500, and no employee has reached the limit. Additional withholdings were Medicare taxes at the rate of 1.45 percent on all earnings and charitable contributions withheld, $845. Required: a. Calculate the amount of Social Security and Medicare taxes to be withheld and prepare the general journal entry to record the payroll. If an amount box does not require an entry, leave it blank. If required, round your intermediate calculations and final answers to the nearest cent and use the rounded answers in…
During January, Luxury Cruise Lines incurs employee salaries of $2.3 million. Withholdings in January are $175,950 for the employee portion of FICA, $345,000 for federal income tax, $143,750 for state income tax, and $23,000 for the employee portion of health insurance (payable to Blue Cross Blue Shield). The company incurs an additional $142,600 for federal and state unemployment tax and $69,000 for the employer portion of health insurance. Required: 1.-3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).) 1 Record the employee salary expense, withholdings, and salaries payable. 2 Record the employer-provided fringe benefits. 3 Record the employer payroll taxes. Date General Journal Debit Credit January 31
Urban Window Company had gross wages of $310,000 during the week ended July 15. The amount of wages subject to social security tax was $310,000, while the amount of wages subject to federal and state unemployment taxes was $35,000. Tax rates are as follows: Social security 6.0% Medicare 1.5% State unemployment 5.4% Federal unemployment 0.6% The total amount withheld from employee wages for federal taxes was $47,000. Required: A. Journalize the entry to record the payroll for the week of July 15.* B. Journalize the entry to record the payroll tax expense incurred for the week of July 15.* *Refer to the Chart of Accounts for exact wording of account titles.
The payroll register for the Puhl Company for the week ended January 15th showed the following : Wages-$800,000 Federal Income Tax withheld- 160,000 Roth IRA deductions- 5,000 United Way deductions- 1,200 Union dues deductions- 850 All wages were subject to FICA (6.2% social security and 1.45% medicare tax). In addition , 620,000 of wages were subject to federal and state unemployment taxes. The state unemployment rate 5.4% and the federal unemployment is 0.8%. 1. Journalize the entry to record the payroll for the week of January 15th. 2. Journalize the entry to record the payroll tax expense for the week of January 15th
On January 21, the column totals of the payroll register for Great Products Company showed that its sales employees had earned $14,710, its truck driver employees had earned $10,300, and its office employees had earned $8,240. Social Security taxes were withheld at an assumed rate of 6.2 percent, and Medicare taxes were withheld at an assumed rate of 1.45 percent. Other deductions consisted of federal income tax, $3,990; and union dues, $540. Determine the amount of Social Security and Medicare taxes withheld and record the general journal entry for the payroll, crediting Salaries Payable for the net pay. All earnings were taxable. If necessary, round intermediate calculations and the final answer to the nearest cent. If an amount box does not require an entry, leave it 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
None
s