On January 8, the end of the first weekly pay perlod of the year, Regis Company's employees earned $21,760 of office salarlesand $70,840 of sales salarles. Withholdings from the employees' salarles Include FICA Social Security taxes at the rate of6.2%, FICA Medicare taxes at the rate of 1.45%, $13,560 of federal Income taxes, $1,400 of medical Insurance deductions, and$880 of union dues. No employee eamed more than $7,000 in this first period.Required:1.1 Calculate below the amounts for each of these four taxes of Regis Company. Regis's state unemployment tax rate is 5.4% ofthe first $7,000 pald to each employee. The federal unemployment tax rate is 0.6%1.2 Prepare the journal entry to record Regis Company's January 8 employee payroll expenses and liabilitles.2 Prepare the Journal entry to record Regis's employer payroll taxes resulting from the January 8 payroll. Regis's stateunemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%.Complete this question by entering your answers in the tabs below.Req 1AReq 18Req 2Calculate below the amounts for each of these four taxes of Regis Company. Regis's state unemployment tax rate is 5.4% ofthe first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. (Round your answers to 2 decimalplaces.)Regis Company's:January 8 earningssubject to taxTaxTax RateТаx AmountFICA-Social SecurityFICA-MedicareFUTASUTA< Req 1AReq 1B >

Tax refers to the compulsory obligation or financial obligation which is imposed by authorities on…

year, Regia nd $70,840 of sales salarles. Withholdings from the employees' salaries Include FICA 2%, FICA Medicare taxes at the rate of 1.45%, $13,560 of federal income taxes, $1,400 B80 of union dues. No employee earmed more than $7,000 in this first pertod. equired: I Calculate below the amounts for each of these four taxes of Regis Company. Regis's e first $7,000 pald to each employee. The federal unemployment tax rate is 0.6% 2 Prepare the journal entry to record Regis Company's January 8 employee payroll ex Prepare the Journal entry to record Regis's employer payroll taxes resulting from the. hemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal un Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Req 2 Calculate below the amounts for each of these four taxes of Regis Company. Regis's state the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. (Roun

year, Regia nd $70,840 of sales salarles. Withholdings from the employees' salaries Include FICA 2%, FICA Medicare taxes at the rate of 1.45%, $13,560 of federal income taxes, $1,400 B80 of union dues. No employee earmed more than $7,000 in this first pertod. equired: I Calculate below the amounts for each of these four taxes of Regis Company. Regis's e first $7,000 pald to each employee. The federal unemployment tax rate is 0.6% 2 Prepare the journal entry to record Regis Company's January 8 employee payroll ex Prepare the Journal entry to record Regis's employer payroll taxes resulting from the. hemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal un Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Req 2 Calculate below the amounts for each of these four taxes of Regis Company. Regis's state the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. (Roun

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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According to a summary of the payroll of Guthrie Co., $560,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $60,000 was subject to state and fed-eral unemployment taxes. a. Compute the employer’s payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.6%. b. Journalize the entry to record the accrual of payroll taxes.
An employee earned $62,500 during the year working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 of employer earnings per calendar year and the FICA tax rate Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. What is the amount of total unemployment taxes the employee must pay?
John Jansen, an employee of Redwood Company, had gross earnings for the month of May of $4,000. FICA taxes are 7.65% of gross earnings (all earnings are subject to), federal income taxes amount to $675 for the month, state income taxes are 3% of gross earnings, and Jansen authorized voluntary deductions of $5 per month to the United Way. What is the net pay for John Jansen? O $2,899 O $3,205 O $3,694 O $2,894
Payroll Tax Entries According to a summary of the payroll of Mountain Streaming Co., $582,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $19,000 was subject to state and federal unemployment taxes. a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.2%; federal unemployment, 0.8%. $ b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank. ▼
Wages paid for the second quarter for Ivanhoe Law Firm were $59,000.00. All wages were subject to FICA taxes (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages). Federal income taxes withheld were $6,820.00. When Ivanhoe files Form 941, what amount should be reported on the following lines of the form? (Round answers to 2 decimal places, e.g. 52.75.) Line 3: Federal income tax withheld. $ Columns 1 Columns 2 Line 5a: Taxable social security wages $ $ Line 5c: Taxable medicare wages and tips $ $
Given the following, calculate the state (assume 5.3%) and federal unemployment taxes that the employer must pay for each of the first two quarters. The federal unemployment tax is 0.8% on the first $7,000. Both state and federal unemployment taxes apply to the first $7,000 only. (Round your answers to the nearest cent.) PAYROLL SUMMARY Quarter 1 Quarter 2 $3,200 Bill Adams $ 7,300 12,800 Rich Haines 7,400 Alice Smooth 2,600 4,400 PAYROLL SUMMARY Quarter 1 Quarter 2 Total $780.8 8 $451.4 SUTA $678.4 $392.2 8 FUTA $102.4 24 59.2 * ...
Required Information [The following information applies to the questions displayed below.] 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. செ Gross Pay through August 31 Gross Pay for September $ 6,800 2,400 131,800 $ 700 2.500 8.400 Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (c). Note: Round your answers to 2 decimal places. a) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security FICA-Medicare FUTA SUTA b) September Earnings Tax Tax Rate Tax Amount Subject to Tax FICA-Social Security FICA-Medicare FUTA BUTA
An employee earns $36 per hour and 1.75 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 60 hours during the week. Assume that the FICA tax rate is 7.5% and that federal income tax of $621 was withheld. a. Determine the gross pay for the week. b. Determine the net pay for the week. Round intermediate calculations and your final answer to the nearest cent, if rounding is required. $
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 2,700 133,300 Gross Pay for September $1,700 2,800 9,900 Assuming situation (a), prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities. Complete this question by entering your answer in the tabs below. Employer Payroll taxes Payroll Taxes General Journal Expense Assuming situation (a), compute the payroll taxes expense. (Round your answers to 2 decimal places.) September earnings subject to tax Tax Rate
[The following information applies to the questions displayed below.] 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. Gross Pay through August 31 Gross Pay for September a. $ 6,000 $ 1,500 b. 2,000 2,100 c. 132,900 9,500 Exercise 11-9 (Algo) Payroll-related journal entries LO P3 Assuming situation (a), prepare the employer’s September 30 journal entry to record the employer’s payroll taxes expense and its related liabilities. Record the employer's September 30 payroll taxes expense and its related liabilities. Note: Enter debits before credits. Date General Journal Debit Credit September 30 Payroll taxes expense FICA—Social security taxes payable FICA—Medicare taxes payable Federal…
Po.7.
Rand Company’s payroll on December 31 of the current year is as follows: • total payroll, $500,000 • payroll in excess of $128,400 to each employee, $350,000 • payroll in excess of $7,000 to each employee, $400,000 • income taxes withheld, $85,000 • union dues withheld, $10,000 • tax rates: state unemployment tax, 5.4%; FICA tax, 8% for employees and 8% for employers for any amounts over $117,000; federal unemployment tax, 0.6% Required: Prepare the journal entries for Rand’s payroll and payroll taxes.