An employee receives an hourly rate of $10, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 50; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $5,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, .8% on the first $7,000. Prepare the journal entries to record the salaries expense and the employer payroll tax expense.
An employee receives an hourly rate of $10, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 50; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $5,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, .8% on the first $7,000. Prepare the journal entries to record the salaries expense and the employer payroll tax expense.
Related questions
Calculate Payroll
K. Mello Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee:
| Consultant | Computer Programmer | Administrator | ||||
| Regular earnings rate | $3,110 per week | $32 per hour | $46 per hour | |||
| Overtime earnings rate | Not applicable | 2 times hourly rate | 1.5 times hourly rate | |||
| Federal income tax withheld | $915 | $246 | $505 | |||
For hourly employees, overtime is paid for hours worked in excess of 40 hours per week.
For the current pay period, the computer programmer worked 55 hours and the administrator worked 65 hours. Assume further that the social security tax rate was 6%, and the Medicare tax rate was 1.5%.
Determine the gross pay and the net pay for each of the three employees for the current pay period. Assume the normal working hours in a week are 40 hours. If required, round your answers to two decimal places.
| Consultant | Computer Programmer | Administrator | |
| Gross pay | $ | $ | $ |
| Net pay | $ | $ | $ |
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 |
The payroll register for Gamble Company for the week ended April 29 indicated the following:
| Salaries | $549,000 |
| Social security tax withheld | 32,940 |
| Medicare tax withheld | 8,235 |
| Federal income tax withheld | 109,800 |
In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.6%, respectively, on $10,000 of salaries.
For a compound transaction, if an amount box does not require an entry, leave it blank.
a. Journalize the entry to record the payroll for the week of April 29.
b. Journalize the entry to record the payroll tax expense incurred for the week of April 29.
