Simpson manages a Dairy King drive-in. His straight-time pay is $16 per hour, with time-and-a-half for hours in excess of 40 per week. Simpson's payroll deductions include withheld income tax of 40%, FICA tax, and a weekly deduction of $10 for a charitable contribution to United Way. Simpson worked 52 hours during the week. Requirements 1. Compute Simpson's gross pay and net pay for the week. Assume earnings to date are $13,000. 2. Journalize Dairy King's wages expense accrual for Simpson's work. An explanation is not required. 3. Journalize the subsequent payment of wages to Simpson. More Info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned
Simpson manages a Dairy King drive-in. His straight-time pay is $16 per hour, with time-and-a-half for hours in excess of 40 per week. Simpson's payroll deductions include withheld income tax of 40%, FICA tax, and a weekly deduction of $10 for a charitable contribution to United Way. Simpson worked 52 hours during the week. Requirements 1. Compute Simpson's gross pay and net pay for the week. Assume earnings to date are $13,000. 2. Journalize Dairy King's wages expense accrual for Simpson's work. An explanation is not required. 3. Journalize the subsequent payment of wages to Simpson. More Info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Simpson
manages a
Dairy King
drive-in. His straight-time pay is
$16
per hour, with time-and-a-half for hours in excess of 40 per week.
Simpson's
payroll deductions include withheld income tax of
40%,
FICA tax, and a weekly deduction of
$10
for a charitable contribution to United Way.
Simpson
worked
52
hours during the week.
Requirements
|
1.
|
Compute
Simpson's
gross pay and net pay for the week. Assume earnings to date are
$13,000.
|
|
2.
|
Journalize
Dairy King's
wages expense accrual for
Simpson's
work. An explanation is not required. |
|
3.
|
Journalize the subsequent payment of wages to
Simpson.
|
More Info
For all payroll calculations, use the following tax rates and round amounts to the nearest cent:
|
Employee:
|
OASDI:
6.2%
on first
$132,900
earned; Medicare:
1.45%
up to
$200,000,
2.35%
on earnings above
$200,000.
|
|
Employer:
|
OASDI:
6.2%
on first
$132,900
earned; Medicare:
1.45%;
FUTA:
0.6%
on first
$7,000
earned; SUTA:
5.4%
on first
$7,000
earned |
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