Electronics Service Company pays salaries monthly on the last day of the month. The following information is available fromElectronics for the month ended December 31, Year 1:Administrative salariesSales salariesOffice salariesAssume the Social Security tax rate is 6 percent on the first $130,000 of salaries. Duke reached the $130,000 amount in December. Hissalary is $11,500 per month and is included in the $96,000. No one else will reach the $130,000 amount for the year. None of theemployee salaries are subject to unemployment tax in December. Other amounts withheld from salaries in December were as follows:$ 96,00057,00038,000Federal income taxState income taxEmployee savings planRequireda. Determine the net pay for employee salary expenses on December 31, Year 1.Net payPayroll tax expense$ 21,50011, 2004,000b. Determine the amount of payroll tax expense for Electronics Service Company for December, Year 1.

After deductions from gross pay, net pay is the amount of remuneration that remains distributable to…

Answered: Required a. Determine the net pay for…

Business

Accounting

Required a. Determine the net pay for employee salary expenses on December 31, Year 1.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The payroll register includes sections for recording:

Q: An employee has a net payroll amount of $5,064.50. What is the correct journal entry to record this…

A: Expense booking entry will be Wages expense Ac Dr 5064.5 to Net payroll payable 5064.5 being expense…

Q: The amount of time over which an employee is paid is known as ___________.…

A: The question is asking for the term that refers to the specific duration or interval over which an…

Q: e following information relates to CA Enterprises payroll for the month Jages Income tax withheld…

A: Payroll -Paying employees is known as payroll. For employees to get their paychecks, employers are…

Q: Continuing Payroll Problem, 4B: Chapter 4 This problem continues the process of preparing the…

A: Federal Income Tax Calculation of Federal Income taxes which comes under the wage bracket in which…

Q: Journalize the February payroll and the payment of the payroll

A: Journal entry is an art of recording, classifying and summarising the business transaction into…

Q: Next Question Find the overtime rate, the amount of earnings at regular pay, the amount at overtime…

A: Overtime Rate: A set rate of remuneration for time spent working more than the regular working…

Q: Which form must be completed annually by all employers, regardless of liability? (a) Form 940.…

A: Employment tax forms are used for employers to deposit and report employment taxes. There are…

Q: A business form that shows all the earnings and withholdings for an individual employee is called…

A: A payroll register is a tool that records wage payment information about each employee, including…

Q: Instructions 1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form…

A: Payroll: It refers to the total payment that a company is required to pay their employees for…

Q: Refer to Exhibit 6-1. Journalize the adjustment for accrued wages for the following Monday, which…

A: Accrued expenses: Accrued expenses are the expenses that have been incurred but have not been paid…

Q: reimbursement plan

A: Those Expenses will be reimbursed by Business to their Employees which are related to business. In…

Q: It is usually associated with employee compensation that is based on the number of hours worked…

A: As per the guidelines, only one question is allowed to be answered so I am answering the first…

Q: The following information relates to CA Enterprises payroll for the month of July: Wages Income tax…

A: Payroll taxes refer to those taxes paid by both employer and employee in order to fund the employee…

Q: repare the employer's September 30 journal entries to record salary expense and its elated payroll…

A: Payroll Payroll is the procedure for paying staff of a firm, to put it simply. It entails gathering…

Q: During the month of January, an employer incurred the following payroll taxes: FICA Social Security…

A: Working notes: Payroll tax expense = FICA social security tax + FICA Medicare tax + FUTA taxes +…

Q: PSb 3-11 Populate Employee Earnings Records (#4) Complete the federal withholding tax (wage-bracket…

A: Under wage bracket method, federal withholdings are calculated on the basis of number of allowances,…

Q: Each wage-bracket table in Publication 15, Circular E contains columns that differ based on what…

A: The wage bracket method is the most important approach as it is straightforward approach, because it…

Q: For the year ended December 31, 2022. Coronado Electrical Repair Company reports the following…

A: Only costs related to employees, such as salary and wages, payroll taxes, benefits expenses, and…

Q: The following information about the payroll for the week ended December 30 was obtained from the…

A: Payroll: The total payment that a company is required to pay to its employee for the services…

Q: prepare the journal entry to record the employers payroll expenses for the week ended july 15 of the…

A: Workings: The nature of account is expense. so all expenses to be debited.

Q: Determine the employer's depos

A: Note 1] In general, you must deposit federal income tax and additional Medicare tax withheld as…

Q: An employee has total gross wages of $7,000, federal withholding of 15% and state withholding of 5%.…

A: Every Employer should pay the wages to its employees after deduction of Federal withholding, State…

Q: PSb 3-11 Populate Employee Earnings Records (#1) Complete the federal withholding tax (wage-bracket…

A: Under wage bracket method, federal withholdings are calculated on the basis of number of allowances,…

Q: Factory Payroll: (To record salaries and wages paid and the employee payroll deductions) (To record…

A: Payroll Taxes: Payroll taxes are levied on salaries, wages, and tips that are paid by both employees…

Q: during my practicum internship i was given the task to do Preparation of payroll . what will be my…

A: As a payroll intern, your primary responsibility will be to assist the payroll department in all…

Q: ayroll Register and Payroll Journal Entry 1. Prepare a payroll register for Mary’s Luxury Travel…

A: Payroll: Payroll refers to the total amount that is required to be paid by the company to its…

Q: Employee Filing Status No. of Withholding Allowances Gross Wage or Salary Percentage Method…

A: Solution A Wage is compensation paid to employees for work for a company during a period of time.

Q: 3. The current employee earnings record for Beth Salzman is provided below. Update Salzman's…

A: Here's what we would need to update the record:Regular Earnings: How many hours did Beth work for…

Q: i am missing a transaction for number 4 "Record the employers payroll expenses"

A: A journal entry is a record of a business transaction in your business books.

Q: Calculation and Journal Entry for Employer Payroll Taxes Earnings for several employees for the…

Q: A record of employment must be issued when an employee with a regular work schedule is expecled to…

A: In the Given case scenario, This statement is false: A record of employment must be issued when an…

Q: Journalize the payroll on March 15, and the accrual of employee payroll taxes

A: Payroll taxes are levied on salaries and wages. These are the taxes which are paid by both the…

Q: cotals from the first payroll of the year are shown below. otal FICA FICA FIT State Union Ne rnings…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: [The following information applies to the questions displayed below.] BMX Company has one employee.…

A: Answer:-Payroll expenses are the costs a company incurs to compensate employees for services…

Q: Completing the Payroll Register The Employee Payroll Register presents all the computations…

A: The payroll process is related to calculating the gross pay, all the applicable taxes, allowed…

Q: An employee has total gross wages of $7,000, Federal Unemployment Expense, and State Unemployment…

A: FICA ( Federal Insurance Contribution Act) taxes refers to the deductions from the gross earnings of…

Q: Taxes to be Withheld From Gross Pay Assuming situation (a), prepare the employer's September 30…

A: FICA - Social Security and MedicareFederal payroll taxes under the Federal Insurance Contributions…

Q: Workers' Compensation Insurance and Adjustment Specialty Manufacturing estimated that its total…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Semimonthly period ended: August 31, 20xx Empl. No. Name 145 Brown, Bill 157 Hanifan, Ted 149 Jones,…

Q: On January 13, at the end of the second weekly pay period of the year, a company's payroll register…

A: Payroll includes all employee expenses and taxes and insurance related to employees

Q: An employee's filing status never appears on the payroll register. True False

A: Payroll register is the record of payroll information for every employee in each pay period. Payroll…

Question

Electronics Service Company pays salaries monthly on the last day of the month. The following information is available from
Electronics for the month ended December 31, Year 1:
Administrative salaries
Sales salaries
Office salaries
Assume the Social Security tax rate is 6 percent on the first $130,000 of salaries. Duke reached the $130,000 amount in December. His
salary is $11,500 per month and is included in the $96,000. No one else will reach the $130,000 amount for the year. None of the
employee salaries are subject to unemployment tax in December. Other amounts withheld from salaries in December were as follows:
$ 96,000
57,000
38,000
Federal income tax
State income tax
Employee savings plan
Required
a. Determine the net pay for employee salary expenses on December 31, Year 1.
Net pay
Payroll tax expense
$ 21,500
11, 200
4,000
b. Determine the amount of payroll tax expense for Electronics Service Company for December, Year 1.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Explain gross pay and net pay

VIEW

Step 2: Calculate social security tax

VIEW

Step 3: Calculate net pay for employee salary expenses

VIEW

Step 4: Calculate payroll tax expense

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Federal Insurance Contributions Act (FICA)

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

To determine how much to deduct from the gross pay of Jason Parker, an employee of Jensen Ltd., one would look at the earnings record. O Form TD1. O payroll register. O Form T4.
An Ontario employer with annual insurable earnings of $15,000 would be required to remit workers' compensation premiums for the month of April by: a. May 31st b. April 30th C. June 30th d. April 30th of the following year e. July 31st
Calculation and Journal Entry for Employer Payroll Taxes 1. Calculate the employer's payroll taxes expense. Round your answer to the nearest cent. 2. Prepare the journal entry to record the employer's payroll taxes expense for the week ended July 15 of the current year. Round your answers to the nearest cent, if required. If an amount box does not require an entry, leave it blank. Portions of the payroll register for Barney’s Bagels for the week ended July 15 are shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.6%, both of which are levied on the first $7,000 of earnings. The Social Security tax rate is 6.2% on the first $118,500 of earnings. The Medicare rate is 1.45% on gross earnings. Barney’s BagelsPayroll Register Total Taxable Earnings of All Employees Total Earnings Unemployment Compensation Social Security $12,200 $10,500 $12,200
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. a. b. C. Gross Pay through August 31 $ 6,400 2,000 131,400 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 $80 for this pay period. Taxes to be Withheld From Gross Pay Gross Pay for September $ 800 Complete this question by entering your answers in the tabs below. 2,100 8,000 General Journal Federal income tax The employee's federal income taxes withheld by the employer are $80 for this pay period. Assuming situation (a), compute the taxes to be withheld from gross pay for this employee. Note: Round your answers to 2 decimal places. Taxes to be Withheld From Gross…
What is the salary allowances of 47000, and 59000 respec and the balance divided equally
Use the combined wage bracket tables, Exhibit 9-3 and Exhibit 9-4, to solve. Employee MaritalStatus WithholdingAllowances Pay Period GrossEarnings CombinedWithholding Reese, S. M 4 Weekly $1,211 $
On the printed "Worksheet" page, journalize the transactions the information from the "Transactions" page.
The payroll records of Jasper Co. provide the following data for the weekly pay period ended March 7 Employee Gross Pay Gross Pay To Date Income Taxes Medical Insurance Deduction Union Dues United Way A $500 $6,000 $100 $30 $15 $10 B 600 6,500 120 30 15 20 C 700 5,500 202 50 0 30 Assume CPP is 4.95 % and El is 1.66 %. 1) Prepare the general journal entry to accrue the payroll on March 7. 2) Prepare the general journal entry to record the payroll tax expense for March 7.
Gross Pay through August 31 $ 6,600 2,200 131,600 Gross Pay for September $ 500 2,300 8,200 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 $80 for this pay period. Complete this question by entering your answers in the tabs below. Taxes to be Withheld From Gross Pay General Journal The employee's federal income taxes withheld by the employer are $80 for this pay period. Assuming situation (a), compute the taxes to be withheld from gross pay for this employee. Note: Round your answers to 2 decimal places. Taxes to be withheld From Gross Pay (Employee-Paid Taxes) Federal income tax September Earnings Subject to Tax Tax Rate Tax Amount $ 80.00 Taxes to be General Journal >
s
Assume that the payroll records of Bramble Oil Company provided the following information for the weekly payroll ended November 30, 2020. Employee T. King T. Binion N.Cole C. Hennesey Hours Worked Date 44 46 Nov. 30 40 Show Transcribed Text Nov. 30 42 Your answer is partially correct. Hourly Pay Rate $69 Salaries and Wages Expense FICA Taxes Payable Account Titles and Explanation Federal Income Taxes Payable Union Dues Payable Salaries and Wages Payable (To record weekly payroll) Payroll Tax Expense 34 FICA Taxes Payable 39 Additional information: All employees are paid overtime at time and a half for hours worked in excess of 40 per week. The FICA tax rate is 7.65% for the first $132,900 of each employee's annual earnings and 1.45% on any earnings over $132,900. The employer pays unemployment taxes of 6.0% (5.4% for state and .6% for federal) on the first $7,000 of each employee's annual earnings. 44 State Income Taxes Payable Federal Income Taxes Payable Federal Income Tax Prepare…
Differentiate wages and salaries in the 13th cheque and normal salary?