
Concept explainers
1.
Payroll: The total payment that a company is required to pay to its employee for the services received is called as payroll.
Payroll withholding deduction: The amounts which the employer withheld from employees’ gross pay to deduct taxes such as federal income tax, state income tax, local income tax, and social security tax are called payroll withholding deduction.
Employer payroll taxes: The taxes which the employer must pay to the employees with their salaries are called employer payroll taxes. Such taxes are not withheld from employees’ gross earnings but instead they are paid by employer.
To calculate: The amount that would be reported for the year on each employee’s wage and tax statement.
1.

Answer to Problem 10.3BPR
Calculate the amount that would be reported for the year on each employee’s wage and tax statement.
Employee | Gross Earnings | Federal Income Tax Withheld | Social Security Tax Withheld | Medicare Tax Withheld |
Mr. A | $44,880(1) | $9,372(2) | $2,692.80(3) | $673.20(4) |
Mr. K | $25,200(5) | $3,731(6) | $1,512.00(7) | $378.00(8) |
Mr. Mc | $67,410(9) | $12,999(10) | $4,044.60(11) | $1,011.15(12) |
Mr. Mo | $55,200(13) | $9,396(14) | $3,312.00(15) | $828.00(16) |
Mr. S | $4,500(17) | $758(18) | $270.00(19) | $67.50(20) |
Mr. T | $4,875(21) | $669(22) | $292.50(23) | $73.13(24) |
Mr. W | $84,000(25) | $18,872(26) | $5,040.00(27) | $1,260.00(28) |
Explanation of Solution
Working notes:
Calculate gross earnings for Mr. A.
Calculate federal income tax withheld for Mr. A.
Calculate social security taxes withheld for Mr. A
Calculate Medicare taxes withheld for Mr. A.
Calculate gross earnings for Mr. K.
Calculate federal income tax withheld for Mr. K.
Calculate social security taxes withheld for Mr. K.
Calculate Medicare taxes withheld for Mr. K.
Calculate gross earnings for Mr. Mc.
Calculate federal income tax withheld for Mr. Mc.
Calculate social security taxes withheld for Mr. Mc.
Calculate Medicare taxes withheld for Mr. Mc.
Calculate gross earnings for Mr. Mo.
Calculate federal income tax withheld for Mr. Mo.
Calculate social security taxes withheld for Mr. Mo.
Calculate Medicare taxes withheld for Mr. Mo.
Calculate gross earnings for Mr. S.
Calculate federal income tax withheld for Mr. S.
Calculate social security taxes withheld for Mr. S.
Calculate Medicare taxes withheld for Mr. S.
Calculate gross earnings for Mr. T.
Calculate federal income tax withheld for Mr. T.
Calculate social security taxes withheld for Mr. T.
Calculate Medicare taxes withheld for Mr. T.
Calculate gross earnings for Mr. W.
Calculate federal income tax withheld for Mr. W.
Calculate social security taxes withheld for Mr. W.
Calculate Medicare taxes withheld for Mr. W.
2.
To calculate: The following employer payroll taxes for the year.
2.

Explanation of Solution
Calculate the following employer payroll taxes for the year.
(A)
Calculate social security tax.
(B)
Calculate Medicare tax.
(C)
Calculate State
(D)
Calculate Federal unemployment tax.
(E)
Calculate total payroll tax expense.
Want to see more full solutions like this?
Chapter 10 Solutions
Financial & Managerial Accounting
- no aiOne company might depreciate a new computer over three years while another company might depreciate the same model computer over five years...and both companies are right. True Falsearrow_forwardno ai An asset's useful life is the same as its physical life? True Falsearrow_forwardno ai Depreciation Expense reflects an allocation of an asset's original cost rather than an allocation based on the economic value that is being consumed. True Falsearrow_forward
- The purpose of depreciation is to have the balance sheet report the current value of an asset. True Falsearrow_forwardDepreciation Expense shown on a company's income statement must be the same amount as the depreciation expense on the company's income tax return. True Falsearrow_forwardDont use AI Give soln.arrow_forward
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781305084087Author:Cathy J. ScottPublisher:Cengage Learning
- College Accounting, Chapters 1-27 (New in Account...AccountingISBN:9781305666160Author:James A. Heintz, Robert W. ParryPublisher:Cengage LearningCentury 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage




