College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 9, Problem 5TF
The W-4, which shows total annual earnings and deductions for federal and state income taxes, must be completed by the employer and given to the employee by January 31.
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Figure 6.1
The form below shows the amounts that appear in the Earnings to Date column of the employees' earnings records for 10 full- and part-time workers in Unger Company. These amounts represent the cumulative earnings for each worker as of October 4, the company's last payday. The form also gives
the gross amount of earnings to be paid each worker on the next payday, October 11.
In the state where Unger Company is located, the tax rates and bases are as follows:
Tax on Employees:
FICA-OASDI
6.2% on first $137,700
FICA-HI
1.45% on total earnings
SUTA
0.5% on first $8,000
Tax on Employer:
FICA-OASDI
6.2% on first $137,700
FICA-HI
1.45% on total earnings
FUTA
0.6% on first $7,000
SUTA
1.8% on first $8,000
Based on the information in problem 2, calculate and record the employers payroll taxes for the period in the general journal below. The state employment tax rate is 5.4 percent, and the federal unemployment tax rate is 0.8 percent.
This problem continues the process of preparing the Kipley Company's Employee Payroll Register for the pay period ending January 8th, 20--. In previous chapters, gross wages were computed for each employee and using this data, FICA withholding and employer FICA liability was computed.
Requirements:
Refer to the SIMPLE Plan Contributions and enter each employee's SIMPLE plan deduction.
Determine and record the federal income taxes for each employee.
Determine and record the state income taxes for each employee.
Determine and record the city income taxes for the city of Pittsburgh.
Total each input column.
Below lists each employee's assigned Time Card No., Filing Status, and Withholding Allowances. This information is necessary when determining the amount of tax to withhold.
TimeCard No.
EmployeeName
FilingStatus
No. ofWithholdingAllowances
11
Fran M. Carson
S
N/A
12
William A. Wilson
S
N/A
13
Harry T. Utley
MFJ
N/A
21
Lawrence R. Fife
MFJ
N/A
22
Lucy K. Smith
S
N/A…
Chapter 9 Solutions
College Accounting, Chapters 1-27
Ch. 9 - Prob. 1TFCh. 9 - Prob. 2TFCh. 9 - Prob. 3TFCh. 9 - Prob. 4TFCh. 9 - The W-4, which shows total annual earnings and...Ch. 9 - Prob. 1MCCh. 9 - Prob. 2MCCh. 9 - Prob. 3MCCh. 9 - Prob. 4MCCh. 9 - Prob. 5MC
Ch. 9 - Total earnings for the employees of Garys Grill...Ch. 9 - Prob. 2CECh. 9 - Prob. 3CECh. 9 - Prob. 4CECh. 9 - Prob. 1RQCh. 9 - Prob. 2RQCh. 9 - Prob. 3RQCh. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - Identify all items that are debited or credited to...Ch. 9 - Prob. 7RQCh. 9 - Prob. 8RQCh. 9 - Prob. 9RQCh. 9 - Prob. 10RQCh. 9 - Prob. 11RQCh. 9 - Prob. 12RQCh. 9 - Prob. 13RQCh. 9 - CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL...Ch. 9 - CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL...Ch. 9 - CALCULATION OF TAXABLE EARNINGS AND EMPLOYER...Ch. 9 - Prob. 4SEACh. 9 - JOURNAL ENTRIES FOR PAYMENT OF EMPLOYER PAYROLL...Ch. 9 - Prob. 6SEACh. 9 - CALCULATING PAYROLL TAXES EXPENSE AND PREPARING...Ch. 9 - JOURNALIZING AND POSTING PAYROLL ENTRIES Cascade...Ch. 9 - Prob. 9SPACh. 9 - CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL...Ch. 9 - Prob. 2SEBCh. 9 - Prob. 3SEBCh. 9 - TOTAL COST OF EMPLOYEE B. F. Goodson employs...Ch. 9 - JOURNAL ENTRIES FOR PAYMENT OF EMPLOYER PAYROLL...Ch. 9 - SUTA taxes on July 31, 20--. WORKERS COMPENSATION...Ch. 9 - Prob. 7SPBCh. 9 - JOURNALIZING AND POSTING PAYROLL ENTRIES Oxford...Ch. 9 - Prob. 9SPBCh. 9 - The director of the art department at an...Ch. 9 - Prob. 1ECCh. 9 - The totals line from Nix Companys payroll register...Ch. 9 - Prob. 1CP
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- On September 30, Hilltop Companys selected payroll accounts are as follows: Prepare general journal entries to record the following: Oct. 15 Payment of federal tax deposit of FICA taxes and the federal income tax. 31 Payment of state unemployment tax. 31 Payment of federal unemployment tax.arrow_forwardFor tax purposes, assume that the maximum taxable earnings are 118,500 for Social Security and 7,000 for the unemployment tax and that all earnings are taxable for Medicare. For the payroll register for the month of November for Shelby, Inc., determine the taxable earnings for each employee.arrow_forwardWallace Corporation summarizes the following information from its weekly payroll records during April. Prepare the two journal entries to record the payment of the payroll and the accrual of its payroll taxes for April. Assume an 8% FICA rate for both employees and the employer. Also assume a 5.4% state unemployment tax rate, a 0.6% federal unemployment tax rate, and that all wages are subject to all payroll taxes. Round to the nearest dollar.arrow_forward
- Employers are required to file a federal tax return reporting payroll and tax liabilities semi-annually monthly quarterly annuallyarrow_forwardb. Assume that the employees of Purnell, Inc., must also pay state contributions (disability insurance) of 1% on the taxable payroll of Example 6-5 $24,100 and that the employees' contributions are to be deducted by the employer. Journalize the September 15 payment of wages, The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be: assuming that the state contributions of the employees are kept in a separate account. Debit Credit For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. Wages Expense 24,762.70 FICA Taxes Payable-OASDI 1,535.29 Date Account Debit Credit FICA Taxes Payable-HI 359.06 Sept. 15 Wage Expense v 8,500 x FIT Payable 3,714.00 FICA Taxes Payable-OASDI 650.25 x SIT Payable 55.25 FICA Taxes Payable-HI V Group Insurance Payments W/H 54.70 Employees Disability Contributions Payable v Cash 19,044.40 Employees FIT Payable v Employees SIT Payable v Example 6-7 Cash v The…arrow_forwardThe State Unemployment Tax Act, better known as SUTA, is a form of payroll tax that all states require employers to pay for their employees. SUTA is a counterpart to FUTA, the federal unemployment insurance program. Complete the following step: Compute and record the employee's SUTA contributions (employees pay 0.06% on total gross pay). Note : Round your final answers to nearest cent. KIPLEY COMPANY, INC.Employee Payroll RegisterFor Period Ending January 8, 20-- EARNINGS DEDUCTIONS NET PAY Name Gross OASDI HI FIT SIT SUTA CIT SIMPLE Grp. Ins. Health Ins. Ck. No. Amount Carson, F. $700.00 $43.40 $10.15 $48.00 $21.49 $21.00 $20.00 Wilson, W. 897.04 55.62 13.01 68.00 27.54 26.91 50.00 Utley, H. 678.75 42.08 9.84 14.00 20.84 20.36 40.00 Fife, L. 877.10 54.38 12.72 33.00 26.93 26.31 50.00 Smith, L. 790.00 48.98 11.46 59.00 24.25 23.70 20.00 Fay, G. 539.15 33.43 7.82 0.00 16.55…arrow_forward
- An employer files which of the following forms with the IRS quarterly to report federal wages paid and federal income taxes withheld? Select one: a. W-4 b. 941 c. 940 d. 1099-MISCarrow_forwardIf Form 941-V is utilized, the amount shown on line 2 of the form must agree with the amount displayed on which line of Form 941? a. 10 b.11 C. 12 d.14 2. Under which condition is an employer NOT required to file a quarterly Form 941? a.annual tax liability for federal income tax, Social Security, & Medicare tax is less than $1,000 b.annual tax liability for federal income tax, Social Security, & Medicare tax is less than $1,500 c. total annual tax liability is less than $2,500 d.total annual tax liability is less than $100,000 Employers pay a higher FUTA tax rate in states that are subject to a credit reduction. True Falsearrow_forwardWhich of the following does not describe a purpose of the employee's earnings records? a. They are part of the payroll package required to be sent to the IRS on an annual basis. b. They are used to prepare internal management analyses. c. They are used to determine where cumulative wages are in relationship to wage bases (caps ) for various taxes, such as OASDI, FUTA, and SUTA. d. They are used to aid in completion of year - end informational returns, such as W -2s.arrow_forward
- how do compute thesocial security taxable earnings?arrow_forwardAn Employer’s Quarterly Federal Tax Return, Form 941, must be filed by the physician-employer on or before: a. January 1, April 1, July 1, October 1 b. January 30, April 30, July 30, October 30 c. April 30, July 31, October 31, January 31 d. February 28, May 31, August 31, November 30 e. March 30, June 30, September 30, December 31arrow_forwardFor tax purposes, assume that the maximum taxable earnings are $118,500 for Social Security and $7,000 for the unemployment tax and that all earnings are taxable for Medicare. For the payroll register for the month of November for Shelby, Inc., determine the taxable earnings for each employee. If an amount is zero, enter "0". NAME BEGINNINGCUMULATIVEEARNINGS TOTALEARNINGS ENDINGCUMULATIVEEARNINGS TAXABLE EARNINGS UNEMPLOYMENT SOCIAL SECURITY MEDICARE Axton, C. 112,800.00 7,691.00 120,491.00 fill in the blank 1 fill in the blank 2 fill in the blank 3 Edgar, E. 145,465.00 10,900.00 156,365.00 fill in the blank 4 fill in the blank 5 fill in the blank 6 Gorman, L. 36,879.00 3,064.00 39,943.00 fill in the blank 7 fill in the blank 8 fill in the blank 9 Jolson, R. 24,634.00 2,325.00 26,959.00 fill in the blank 10 fill in the blank 11 fill in the blank 12 Nixel, P. 6,850.00 2,463.00 9,313.00 fill in the blank 13 fill in the blank 14 fill in the blank 15arrow_forward
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