A company's employees had the following earnings records at theclose of the current payroll period:
Employees Earnings through Prior Pay Period Earnings this payperiod
D. Adams 11,300 3,900
J. Hess 6,100 2,500
R. Lui 9,500 3,100
T. Morales 4,800 1,400
L. Vang 10,000 3,000
The company's payroll taxes expense on each employee's earningsincludes: FICA Social Security taxes of 6.2% on the first $84,900plus 1.45% FICA Medicare on all wages; 0.8% federal unemploymenttaxes on the first $7,000; and 2.5% state unemployment taxes on thefirst $7,000. Compute the employer's total payroll taxes expensefor the current pay period.
Employees Earnings through Prior Pay Period Earnings this payperiod
D. Adams 11,300 3,900
J. Hess 6,100 2,500
R. Lui 9,500 3,100
T. Morales 4,800 1,400
L. Vang 10,000 3,000
The company's payroll taxes expense on each employee's earningsincludes: FICA Social Security taxes of 6.2% on the first $84,900plus 1.45% FICA Medicare on all wages; 0.8% federal unemploymenttaxes on the first $7,000; and 2.5% state unemployment taxes on thefirst $7,000. Compute the employer's total payroll taxes expensefor the current pay period.
Related questions
Paloma Co. Stars has four employees. FICA Social Security taxesare 6.2% of the first $110,100 paid to each employee, and FICAMedicare taxes are 1.45% of gross pay. Also, its FUTA taxes are0.8% and SUTA taxes are 2.15% of the first $7,000 paid to eachemployee. The company is preparing its payroll calculations for theweek ended August 25. Payroll records show the followinginformation for the companyâs four employees.
name | Gross Pay 8/18 | Gross Pay | Income Tax Withholding |
| Dahlia | 107,200 | 3800 | 276 |
| Trey | 36250 | 820 | 137 |
| Kiesha | 8000 | 630 | 57 |
| Chee | 1950 | 580 | 48 |
In addition to gross pay, the company must pay one-half of the$60 per employee weekly health insurance; each employee pays theremaining one-half. The company also contributes an extra 8% ofeach employeeâs gross pay (at no cost to employees) to a pensionfund.
Required:
Compute the following for the week ended August 25 (Round youranswers 2 decimal places)
Employee | Earnings subject to tax | Tax rate | Tax amount |
| Dahlia | |||
| Trey | |||
| Kiesha | |||
| Chee |
2)Emmployees' FICA withholding for Medicare
| Employee | Earnings Subject to Tax | Tax Rate | Tax Amount |
| Dahlia | |||
| Trey | |||
| Kiesha | |||
| Chee |
3)Employer's FICA taxes for Social Security
| Employee | Earnings subject to tax | tax rate | tax amount |
| Dahlia | |||
| Trey | |||
| Kiesha | |||
| Chee |
4) Employer's FICA taxes for Medicare
| Employee | Earnings subject to Tax | Tax Rate | Tax Amount |
| Dahlia | 1.45 | ||
| Trey | 1.45 | ||
| Kiesha | 1.45 | ||
| Chee | 1.45 |
5)Employer's FUTA taxes
| Employee | Earnings subject to tax | Tax Rate | Tax Amount |
| Dahlia | .8 | ||
| Trey | .8 | ||
| Kiesha | .8 | ||
| Chee | .8 |
6) Employer's SUTA taxes
| Employee | Earnings subhect to tax | Tax Rate | Tax Amount |
| Dahlia | 2.15 | ||
| Trey | 2.15 | ||
| Kiesha | 2.15 | ||
| Chee | 2.15 |
7) Each employee's net (take-home) pay
| Employee | Dahlia | Trey | Kiesha | Chee | Total |
| Gross Pay | 3800 | 820 | 630 | 580 | 5830 |
| Income Tax Withholding | 276 | 137 | 57 | 48 | 518 |
| FICA -SS | |||||
| FICA - Medicare | |||||
| Health Insurance | |||||
| Net Pay |
8) Total payroll related expense for each employee
| Employee | Dahlia | Trey | Kiesha | Chee | Total |
| Gross Pay | 3800 | 820 | 630 | 580 | 5830 |
| FICA - SS | |||||
| FICA -Medicare | |||||
| FUTA | |||||
| SUTA | |||||
| Health Insurance | |||||
| Pension | |||||
| Total Payroll Expense |
PROBLEM #2 â 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:
| Employeeâs 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 |
Employeeâs 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 |
Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $118,500 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, for the first $7,000 paid to each employee, the companyâs FUTA taxes are 0.6% and SUTA taxes are 2.15%. The company is preparing its payroll calculations for the week ended August 25. Payroll records show the following information for the companyâs four employees.
| Current Week | ||||||||||||||
| Name | Gross Pay through Aug. 18 | Gross Pay | Income Tax Withholding | |||||||||||
| Dali | $ | 115,800 | $ | 3,600 | $ | 511 | ||||||||
| Trey | 116,450 | 2,050 | 330 | |||||||||||
| Kiesha | 8,700 | 610 | 53 | |||||||||||
| Chee | 2,650 | 560 | 42 | |||||||||||
In addition to gross pay, the company must pay one-half of the $92 per employee weekly health insurance; each employee pays the remaining one-half. The company also contributes an extra 8% of each employeeâs gross pay (at no cost to employees) to a pension fund.
Required:
Compute the following for the week ended August 25. (Round your intermediate calculations and final answers to 2 decimal places.):
| 1) Employees' FICA Withholdings for Social Security | ||||||||||
| Employee | Earnings Subject to Tax | Tax Rate | Tax Amount | |||||||
| Dali | ||||||||||
| Trey | ||||||||||
| Kiesha | ||||||||||
| Chee | ||||||||||
| Total | $0.00 | |||||||||
| 2) Employees' FICA Withholdings for Medicare | ||||||||||
| Employee | Earnings Subject to Tax | Tax Rate | Tax Amount | |||||||
| Dali | ||||||||||
| Trey | ||||||||||
| Kiesha | ||||||||||
| Chee | ||||||||||
| Total | $0.00 | |||||||||
| 3) Employer's FICA Taxes for Social Security | ||||||||||
| Employee | Earnings Subject to Tax | Tax Rate | Tax Amount | |||||||
| Dali | ||||||||||
| Trey | ||||||||||
| Kiesha | ||||||||||
| Chee | ||||||||||
| Total | $0.00 | |||||||||
| 4) Employer's FICA Taxes for Medicare | ||||||||||
| Employee | Earnings Subject to Tax | Tax Rate | Tax Amount | |||||||
| Dali | ||||||||||
| Trey | ||||||||||
| Kiesha | ||||||||||
| Chee | ||||||||||
| Total | $0.00 | |||||||||
| 5) Employer's FUTA Taxes | ||||||||||
| Employee | Earnings Subject to Tax | Tax Rate | Tax Amount | |||||||
| Dali | ||||||||||
| Trey | ||||||||||
| Kiesha | ||||||||||
| Chee | ||||||||||
| Total | $0.00 | |||||||||
| 6) Employer's SUTA Taxes | ||||||||||
| Employee | Earnings Subject to Tax | Tax Rate | Tax Amount | |||||||
| Dali | ||||||||||
| Trey | ||||||||||
| Kiesha | ||||||||||
| Chee | ||||||||||
| Total | $0.00 | |||||||||
| 7) Each Employee's Net (take-home) Pay | ||||||||||
| Employee | Dali | Trey | Kiesha | Chee | Total | |||||
| Gross Pay | $3,600.00 | $2,050.00 | $610.00 | $560.00 | $6,820.00 | |||||
| Income tax withholding | 511.00 | 330.00 | 53.00 | 42.00 | 936.00 | |||||
| FICA - Social Security | 0.00 | |||||||||
| FICA - Medicare | 0.00 | |||||||||
| Health Insurance | 0.00 | |||||||||
| Net Pay | $0.00 | |||||||||
| 8) Total Payroll Related Expense for Each Employee | ||||||||||
| Employee | Dali | Trey | Kiesha | Chee | Total | |||||
| Gross Pay | $3,600.00 | $2,050.00 | $610.00 | $560.00 | $6,820.00 | |||||
| FICA - Social Security | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
| FICA - Medicare | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
| FUTA | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
| SUTA | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
| Health Insurance | 0.00 | |||||||||
| Pension | 0.00 | |||||||||
| Total Payroll Expense | $3,600.00 | $2,050.00 | $610.00 | $560.00 | $6,820.00 | |||||
