The following information is available for the employees of Webber Packing Company for the first week of January Year 1 1. Kayla earns $26 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 50 hours the first week in January. Kayla's federal income tax withholding is equal to 11 percent of her gross pay. Webber pays medical insurance of $100 per week to a retirement plan for her. 2. Paula earns a weekly salary of $1,150. Paula's federal income tax withholding is 17 percent of her gross pay. Webber pays medical insurance of $145 per week for Paula and contributes $135 per week to a retirement plan for her. 3. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $75 per week for Paula. Assume the Social Security tax rate is 6 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent of total salaries. The state unemployment tax rate is 5.4 percent and the federal unemployment tax rate is 0.6 percent of the first $7,000 of salary for each employee. d. Prepare the journal entry to record the payroll tax expense and fringe expense for webber padcking Company for the week. (If no entry is required for a transaction/event, select "No journal entry required" in the first account. Round your answer to 2 decimals places)
The following information is available for the employees of Webber Packing Company for the first week of January Year 1
1. Kayla earns $26 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 50 hours the first week in January. Kayla's federal income tax withholding is equal to 11 percent of her gross pay. Webber pays medical insurance of $100 per week to a retirement plan for her.
2. Paula earns a weekly salary of $1,150. Paula's federal income tax withholding is 17 percent of her gross pay. Webber pays medical insurance of $145 per week for Paula and contributes $135 per week to a retirement plan for her.
3. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $75 per week for Paula.
Assume the Social Security tax rate is 6 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent of total salaries. The state
d. Prepare the
Payroll expenses are the salary or wage expenses paid to the employees by the employer including the withholding of taxes and other fringe benefits if provided by the employer. The transactions for payment of salaries are recorded by passing journal entries in the books of the employer. Employer passes the entries for salary payable to record the employee payroll expenses with withholding taxes by the employee, entry for any fringe benefits if payable by the employer like for a vacation, health insurance, pension, etc., and entry for payroll tax expenses which includes all the liabilities bearable by the employer.
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