Selected information from the payroll register of Barbara's Stables for the week ended September 28, 20--, is as follows: Social Security tax is 6.2% on the first $128,400 of earnings for each employee. Medicare tax is 1.45% of gross earnings, FUTA tax is 0.8%, and SUTA tax is 5.4% each on the first $7,000 of earnings. Cumulative Pay Current Taxable Earnings Employee Name Before Current Earnings Gross Pay Unemployment Compensation Social Security Carlosi, Peggy $ 84,240 $2,350 Sanchez, Carmela 81,900 2,100 Delaney, Roger 109,800 3,320 Weitz, Alana 6,300 1,100 Dunhill, Craig 6,800 1,000 Bella, Stephen 42,330 1,850
Selected information from the payroll register of Barbara's Stables for the week ended September 28, 20--, is as follows: Social Security tax is 6.2% on the first $128,400 of earnings for each employee. Medicare tax is 1.45% of gross earnings, FUTA tax is 0.8%, and SUTA tax is 5.4% each on the first $7,000 of earnings.
Cumulative Pay | Current | Taxable Earnings | ||
Employee Name | Before Current Earnings |
Gross Pay |
Unemployment Compensation |
Social Security |
Carlosi, Peggy | $ 84,240 | $2,350 | ||
Sanchez, Carmela | 81,900 | 2,100 | ||
Delaney, Roger | 109,800 | 3,320 | ||
Weitz, Alana | 6,300 | 1,100 | ||
Dunhill, Craig | 6,800 | 1,000 | ||
Bella, Stephen | 42,330 | 1,850 |
![1. Calculate the amount of taxable earnings for unemployment and Social Security taxes.
Cumulative Pay
Taxable Earnings
Current
Before Current
Gross
Unemployment
Social
Earnings
Employee Name
Pay
Compensation
Security
Carlosi, Peggy
$84,240
$2,350
Sanchez, Carmela
81,900
2,100
Delaney, Roger
109,800
3,320
Weitz, Alana
6,300
1,100
Dunhill, Craig
6,800
1,000
Bella, Stephen
42,330
1,850
2. Prepare the journal entry to record the employer's payroll taxes as of September 28, 20--. If required, round your answers to the nearest
cent. If an amount box does not require an entry, leave it blank.
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DATE
DESCRIPTION
DEBIT CREDIT
REF.
1 Sep. 28
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R. L. Ybarra employs John Ince at a salary of $53,000 a year. Ybarra is subject to employer Social Security taxes at a rate of 6.2% and Medicare taxes at a rate of 1.45% on John's salary. In addition, Ybarra must pay SUTA tax at a rate of 5.4% and FUTA tax at a rate of 0.8% on the first $7,000 of Ince's salary.
Compute the total cost to Ybarra of employing Ince for the year. Round your answer to the nearest cent.
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