Lawrence's pay is subject to social security taxes at an (assumed) 6.5% rate and Medicare/Medicaid at an (assumed) 1.5% rate. He has not exceeded the annual base for social security taxes.
Baylor pays for workers' compensation insurance at a 4% rate. None of this cost is paid by the employee.
Baylor provides its employees with health care insurance, and pays 90% of the $500 per employee monthly premium. The other 10% is paid by employees via payroll withholdings.
Lawrence participates in a tax-sheltered deferred savings plan and has 8% of his gross pay withheld each month. Baylor Health Systems provides a 75% matching contribution. In other words, for every dollar that Lawrence saves, Baylor will contribute an additional 75 cents.
Baylor's payroll is subject to federal (0.5%) and state (1.5%) unemployment taxes on each employee's gross pay, up to $8,000 per year. Lawrence had $6,000 of gross earnings in the months prior to June.
Lawrence participates in the Community Chest fund drive each month, via a $25 contribution that is withheld from his pay.
(a) Complete Lawrence's paycheck and the remittance advice (i.e., "paycheck stub"). The blank worksheet will be very helpful for this portion of the assignment.
(b) Prepare journal entries for Lawrence's pay and the related payroll expenses.
(c) What is the total cost to Baylor for Lawrence's services during June?
(a)
BAYLOR HEALTH Check # 95859
Payroll Account Date: June 30, 20XX
Pay to the order of:
First Corner Bank
MEMO: June payroll for Bodine Judy Baylor
Detach below before depositing, and save for your records:
Employee: L. Bodine Gross Earnings $ -
Pay Period: June 20XX Deductions:
Federal Income Tax $ -
Social Security Tax -
Medicare/Medicaid Tax -
Insurance -
Retirement Savings Plan -
Charity - -
Net Pay $ -
Supporting calculations:
(b)
GENERAL JOURNAL
Date Accounts Debit Credit
Lawrence's pay is subject to social security taxes at an (assumed) 6.5% rate and Medicare/Medicaid at an (assumed) 1.5% rate. He has not exceeded the annual base for social security taxes.
Baylor pays for workers' compensation insurance at a 4% rate. None of this cost is paid by the employee.
Baylor provides its employees with health care insurance, and pays 90% of the $500 per employee monthly premium. The other 10% is paid by employees via payroll withholdings.
Lawrence participates in a tax-sheltered deferred savings plan and has 8% of his gross pay withheld each month. Baylor Health Systems provides a 75% matching contribution. In other words, for every dollar that Lawrence saves, Baylor will contribute an additional 75 cents.
Baylor's payroll is subject to federal (0.5%) and state (1.5%) unemployment taxes on each employee's gross pay, up to $8,000 per year. Lawrence had $6,000 of gross earnings in the months prior to June.
Lawrence participates in the Community Chest fund drive each month, via a $25 contribution that is withheld from his pay.
(a) Complete Lawrence's paycheck and the remittance advice (i.e., "paycheck stub"). The blank worksheet will be very helpful for this portion of the assignment.
(b) Prepare journal entries for Lawrence's pay and the related payroll expenses.
(c) What is the total cost to Baylor for Lawrence's services during June?
(a)
BAYLOR HEALTH Check # 95859
Payroll Account Date: June 30, 20XX
Pay to the order of:
First Corner Bank
MEMO: June payroll for Bodine Judy Baylor
Detach below before depositing, and save for your records:
Employee: L. Bodine Gross Earnings $ -
Pay Period: June 20XX Deductions:
Federal Income Tax $ -
Social Security Tax -
Medicare/Medicaid Tax -
Insurance -
Retirement Savings Plan -
Charity - -
Net Pay $ -
Supporting calculations:
(b)
GENERAL JOURNAL
Date Accounts Debit Credit
Related questions
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 | |||||
Paloma Co. Stars has four employees. FICA Social Security taxesare 6.2% of the first $117,000 paid to each employee, and FICAMedicare taxes are 1.45% of gross pay. Also, for the first $7,000paid to each employee, the companyâs FUTA taxes are .6% and SUTAtaxes are 6.20%. The company is preparing its payroll calculationsfor the week ended August 25. Payroll records show the followinginformation for the companyâs four employees.
| Current Week | ||||||||||||
| Name | Gross Pay through Aug. 18 | Gross Pay | Income Tax Withholding | |||||||||
| Dahlia | $ | 115,600 | $ | 2,600 | $ | 369 | ||||||
| Trey | 116,250 | 750 | 121 | |||||||||
| Kiesha | 8,300 | 570 | 49 | |||||||||
| Chee | 2,250 | 520 | 39 | |||||||||
In addition to gross pay, the company must pay one-half of the$84 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 your intermediate calculations and final answers to2 decimal places.): |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
