Watson works for MRK all year and earns a monthly salary of $12,800. There is no overtime pay. Giana's income tax withholding rate is 12% of gross pay. In addition to payroll taxes, Giana elects to contribute 2% monthly to United Way. MRK also deducts $250 monthly for co-payment of the health insurance premium. As of September 30, Giana had $128,000 of cumulative earnings. LOADING... (Click the icon to view payroll tax rate information.) 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 Requirements 1. Compute Giana's net pay for October. 2. Journalize the accrual of salaries expense and the payment related to the employment of Giana Watson.
Watson works for MRK all year and earns a monthly salary of $12,800. There is no overtime pay. Giana's income tax withholding rate is 12% of gross pay. In addition to payroll taxes, Giana elects to contribute 2% monthly to United Way. MRK also deducts $250 monthly for co-payment of the health insurance premium. As of September 30, Giana had $128,000 of cumulative earnings. LOADING... (Click the icon to view payroll tax rate information.) 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 Requirements 1. Compute Giana's net pay for October. 2. Journalize the accrual of salaries expense and the payment related to the employment of Giana Watson.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Watson
works for
MRK
all year and earns a monthly salary of
$12,800.
There is no overtime pay.
Giana's
income tax withholding rate is
12%
of gross pay. In addition to payroll taxes,
Giana
elects to contribute
2%
monthly to United Way.
MRK
also deducts
$250
monthly for co-payment of the health insurance premium. As of September 30,
Giana
had
$128,000
of cumulative earnings.LOADING...
(ClickFor 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 |
Requirements
|
1.
|
Compute
Giana's
net pay for October. |
|
2.
|
Journalize the accrual of salaries expense and the payment related to the employment of
Giana
Watson.
|
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