**Problem #3**Ernesto Enterprises uses the wage-bracket method to determine federal income tax withholding on its employees. Find the amount to withhold from the wages paid each employee.| Employee | Filing Status | No. of Withholding Allowances | Payroll Period | Wage | Amount to Be Withheld ||----------------|---------------|-------------------------------|----------------|-------|------------------------|| Lily Troon | MFJ | N/A | W | $1,250| || Barry Ortega | S | N/A | W | 695 | || Pat Lopez | S | N/A | W | 915 | || Rex Kim | MFJ | N/A | M | 3,070 | || Ruth Horace | MFJ | N/A | M | 2,730 | || Tom Gleam | MFJ | N/A | S | 1,200 | || Tom Abreu | S | N/A | D | 115 | || Holly Sanchez | S | N/A | S | 2,040 | || Kathy Nee | MFJ | N/A | M | 3,500 | |**Key:**- **W** = Weekly- **S** = Semimonthly- **M** = Monthly- **D** = Daily**Note:** The table provides the details required to calculate the withholding amount using the wage-bracket method. The empty column labeled "Amount to Be Withheld" is where the deducted amounts will be filled in based on the wage-bracket calculations.

In the question as not financial year is mentioned, we will compute as year 2021

Answered: Problem #3 Ernesto Enterprises uses the…

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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PROBLEMS employee of Plum Hollow Country Chib, carned $1,200 during the first 27. Using the information below, determine the amount of the payroll tax expense for B. Harper Company. In your answer list the amounts for FICA (OASDI and Medicare), SUTA, FUTA and the total. Taxable Earnings Employee K. Addington $500 K. Wilcox 450 T. Sharma 350 Assume: FICA tax rates are: OASDI 6.2% on a limit of $102,000 and Medicare 1.45% State Unemployment tax rate is 5.0% on the first $7,000 Federal Unemployment tax rate is 0.8% on the first $7,000 ANSWER: FICA-Social Security FICA-Medicare SUTA FUTA Total
Calculation and Journal Entry for Employer Payroll Taxes Earnings for several employees for the week ended March 12, 20--, are as follows: Taxable Earnings Employee Name CurrentEarnings UnemploymentCompensation SocialSecurity Aus, Glenn E. $700 $200 $700 Diaz, Charles K. 350 350 350 Knapp, Carol S. 1,200 — 1,200 Mueller, Deborah F. 830 125 830 Yeager, Jackie R. 920 35 920 1. Calculate the employer’s payroll taxes expense for the week ended March 12, 20--, assuming that FUTA tax is 0.6%, SUTA tax is 5.4%, Social Security tax is 6.2%, and Medicare tax is 1.45%.
Ward Feb. 1 6,300 1,355 Required: 1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for 2018. Note: Round amounts to the nearest whole dollar and enter all amounts as positive values. Employee Gross Earnings Federal Income Social Security Medicare Tax Withheld Tax Withheld Tax Withheld Arnett 3,900 546 234 $ 59 Cruz 5,100 918 306 77 Edwards 2,900 363 174 44 Harvin 2,200 275 132 33 < Nicks 5,650 1,271 339 47 Shiancoe 3,100 481 186 85 Ward 6,300 1,355 378 95 $ 1,318 331 2. Calculate the following employer payroll taxes for the year: (a) social security; (b) Medicare; (c) state unemployment compensation at 5.4% on the first $10,0 employee's earnings; (d) federal unemployment compensation at 0.6% on the first $10,000 of each employee's earnings; (e) total. Note: Round amounts to the nearest whole dollar and enter all amounts as positive values. (a) $ 1,745
Amounts to Be Reported on Wage and Tax Statements (Form W-2) Gross Federal Income Social Security Medicare Employee Earnings Tax Withheld Tax Withheld Tax Withheld Arnett $ 8,250.00 $ 1,416.00 $ 495.00 $ 123.75 Cruz 57,600.00 9,996.00 3,456.00 864.00 Edwards 24,000.00 4,776.00 1,440.00 360.00 Harvin 6,000.00 1,070.00 360.00 90.00 Nicks 110,000.00 25,850.00 6,600.00 1,650.00 Shiancoe 116,000.00 26,000.00 6,960.00 1,740.00 Ward 7,830.00 1,314.00 469.80 117.45 Totals $ 329,680.00 $ 19,780.80 $ 4,945.20 Employer Payroll Taxes a. Social security…
Problem 5-3A (Algo) The following salaried employees of Mountain Stone Brewery in Fort Collins, Colorado, are paid semimonthly. Some employees have union dues or garnishments deducted from their pay. You do not need to complete the number of hours. Required: Calculate their net pay using the percentage method for manual payroll systems with Forms W-4 from 2020 or later in Appendix C to determine federal income tax. Assume box 2 is not checked for any employee. Include Colorado income tax of 4.40 percent of taxable pay. No employee has exceeded the maximum FICA limit. Note: Round your intermediate calculations and final answers to 2 decimal places. Employee S. Bergstrom C. Pare L. Van der Hooven S. Lightfoot Filing Status, Dependents MJ-0 MJ-2 (<17) S-1 (Other) MJ-0 $ Pay Union Dues per Period 1,750 3,600 $ 3,325 $ $ $ $ 2,950 Garnishment per Period 120 240 $ $ 50 75 100 Net Pay
on 4 An employee has total gross wages of $7,000, Federal Unemployment Expense, and State Unemployment Expense. What is the correct journal entry for the employer's payroll taxes and otl expenses? Debit Crédit $535.50 $420.00 FICA Expenses Federal Unemployment Expense State Unemployment $378.00 Expense FICA Payable Federal Unemployment Expense State Unemployment Expense $535.50 $420.00 $378.00 Debit Credit FICA Expenses Federal Unemployment $535.50 $420.00 Expense State Unemployment Expense $378.00 Cash $1,333.50 Debit Credit FICA Payable Federal Unemployment $535.50 $420.00 Expense State Unemployment Payable FICA Expenses Federal Unemployment Expense State Unemployment Expense $378.00 $535.50 $420.00 $378.00 MacBook Air
Use (a) the percentage method and (b) the wage-bracket method to compute the federal income taxes to withhold from the wages or salaries of each employee.
Taxes to be Withheld From Gross Pay Assuming situation (a), prepare the employer's September 30 journal entry to record salary expense and its related payroll liabilities for this employee. The employee's federal income taxes withheld by the employer are $90 for this pay period. Note: Round your answers to 2 decimal places. General Journal View transaction list Journal entry worksheet 1 Prepare the employer's September 30 journal entry to record accrued salary expense and its related payroll liabilities for this employee. Note: Enter debits before credits. Date September 30 Record entry General Journal Clear entry Debit Credit View general journal
How to get the gross taxable income
s
P Problem 5-3A (Algo) The following salaried employees of Mountain Stone Brewery in Fort Collins, Colorado, are paid semimonthly. Some employees have union dues or garnishments deducted from their pay. Required: Calculate their net pay using the percentage method for manual payroll systems with Forms W-4 from 2020 or later in Appendix C to determine federal income tax. Assume box 2 is not checked for any employee. Include Colorado income tax of 4.55 percent of taxable pay. No employee has exceeded the maximum FICA limit. (Round your intermediate calculations and final answers to 2 decimal places.) Employee S. Bergstrom C. Pare L. Van der Hooven S. Lightfoot F2 # 3 E JUL 7 80 F3 Filing Status, Dependents MJ-0 MJ-2 ( IM ZA O * 00 8 DII F8 1 ( 9 J K CV BN M F9 O < W F10 L P 4 F11 P
UNGER COMPANY

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