Question

PROBLEM #2 – Can someone help me understand this? Thanks!

Presented below are the employee payroll records of the Bronsan Company for the week ending November 15, 20XX:

Employee’s Name	YTD Earnings	Curr Week Gross Pay	Fed Inc Tax	Medical Ins Ded.
R. Hawn	$ 25,700	$ 800	$ 155	$ 35
D. Hopkins	930	800	134	35
R. Allen	86,900	1,000	193	42
A. Ingram	18,400	740	128	42

Employee’s FICA taxes are withheld at a rate of 6.2% on the first $87,000 earned for Social Security and 1.45% of all wages for Medicare. Assume a state unemployment tax rate of 5.4% and a federal unemployment tax rate of 0.8% on the first $7,000 for each employee. Prepare the payroll register for the pay period and then prepare the necessary journal entries to record the payroll and payroll taxes.

(Hint: Remember to prepare both employee payroll taxes and employer payroll taxes.)

Payroll Register

Employee	Gross Pay	Fed Inc Tax	Soc Sec Tax	Medicare Tax	Insurance	Net Pay

General Journal

Date	Description	Debit	Credit