The form below shows the amounts that appear in the Earnings toDate column of the employees' earnings records for 10 full-time andpart-time workers in Unger Company. These amounts represent thecumulative earnings for each worker as of October 7, the company'slast payday. The form also gives the gross amount of earnings to bepaid each worker on the next payday, October 14.
In the state where Unger Company is located, the tax rates andbases are as follows:
Tax on Employees: FICAâOASDI 6.2% on first $118,500 FICAâHI 1.45% on total earnings SUTA 0.5% on first $8,000 Tax on Employer: FICAâOASDI 6.2% on first $118,500 FICAâHI 1.45% on total earnings FUTA 0.6% on first $7,000 SUTA 1.8% on first $8,000
In the appropriate columns of the form shown below, do thefollowing:
1. Compute the amount to bewithheld from each employee's earnings on October 14 for (a)FICA-OASDI (b) FICA-HI, and (c) SUTA, and determine the totalemployee taxes.
2. Record the portion of eachemployee's earnings that is taxable under FICA, FUTA, and SUTA, andcalculate the total employer's payroll taxes on the October 14payroll.
If an amount box does not require an entry, leave it blank. Ifrequired, round your answers to the nearest cent. Enter the taxrates as decimals, carried out to four decimal places whenrequired.
UNGER COMPANY
Gross Taxes to Be Withheld from
Employees' Earnings Under Employer Taxes: Portion of Employees'
Earnings Taxable Under Earnings to Earnings FICA FICA Employee Date Oct. 14 OASDI HI SUTA OASDI HI FUTA SUTA 1. Weiser, Robert A. $118,790 $1,790 $ $ $ $ $ $ $ 2. Stankard, Laurie C. 14,950 295 3. Grow, Joan L. 4,060 240 4. Rowe, Paul C. 8,190 235 5. McNamara, Joyce M. 7,460 195 6. O'Connor, Roger T. 118,210 1,810 7. Carson, Ronald B. 8,905 280 8. Kenny, Ginni C. 4,325 175 9. Devery, Virginia S. 57,010 590 10. Wilson, Joe W. 3,615 205 Total employee taxes $ $ $ Total taxable earnings $ $ $ $ Applicable tax rate (enter as decimals, notpercentages) Totals $ $ $ $ Total payroll taxes $
The form below shows the amounts that appear in the Earnings toDate column of the employees' earnings records for 10 full-time andpart-time workers in Unger Company. These amounts represent thecumulative earnings for each worker as of October 7, the company'slast payday. The form also gives the gross amount of earnings to bepaid each worker on the next payday, October 14.
In the state where Unger Company is located, the tax rates andbases are as follows:
| Tax on Employees: | ||
| FICAâOASDI | 6.2% on first $118,500 | |
| FICAâHI | 1.45% on total earnings | |
| SUTA | 0.5% on first $8,000 | |
| Tax on Employer: | ||
| FICAâOASDI | 6.2% on first $118,500 | |
| FICAâHI | 1.45% on total earnings | |
| FUTA | 0.6% on first $7,000 | |
| SUTA | 1.8% on first $8,000 | |
In the appropriate columns of the form shown below, do thefollowing:
1. Compute the amount to bewithheld from each employee's earnings on October 14 for (a)FICA-OASDI (b) FICA-HI, and (c) SUTA, and determine the totalemployee taxes.
2. Record the portion of eachemployee's earnings that is taxable under FICA, FUTA, and SUTA, andcalculate the total employer's payroll taxes on the October 14payroll.
If an amount box does not require an entry, leave it blank. Ifrequired, round your answers to the nearest cent. Enter the taxrates as decimals, carried out to four decimal places whenrequired.
| UNGER COMPANY | |||||||||||
| Gross | Taxes to Be Withheld from Employees' Earnings Under | Employer Taxes: Portion of Employees' Earnings Taxable Under | |||||||||
| Earnings to | Earnings | FICA | FICA | ||||||||
| Employee | Date | Oct. 14 | OASDI | HI | SUTA | OASDI | HI | FUTA | SUTA | ||
| 1. Weiser, Robert A. | $118,790 | $1,790 | $ | $ | $ | $ | $ | $ | $ | ||
| 2. Stankard, Laurie C. | 14,950 | 295 | |||||||||
| 3. Grow, Joan L. | 4,060 | 240 | |||||||||
| 4. Rowe, Paul C. | 8,190 | 235 | |||||||||
| 5. McNamara, Joyce M. | 7,460 | 195 | |||||||||
| 6. O'Connor, Roger T. | 118,210 | 1,810 | |||||||||
| 7. Carson, Ronald B. | 8,905 | 280 | |||||||||
| 8. Kenny, Ginni C. | 4,325 | 175 | |||||||||
| 9. Devery, Virginia S. | 57,010 | 590 | |||||||||
| 10. Wilson, Joe W. | 3,615 | 205 | |||||||||
| Total employee taxes | $ | $ | $ | ||||||||
| Total taxable earnings | $ | $ | $ | $ | |||||||
| Applicable tax rate (enter as decimals, notpercentages) | |||||||||||
| Totals | $ | $ | $ | $ | |||||||
| Total payroll taxes | $ | ||||||||||
Related questions
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 2.9% of the first $7,000 paid to its employee.
| Gross Pay through August | Gross Pay for September | |
| a. | $ 6,400 | $ 800 |
| b. | $ 18,200 | $ 2,100 |
| c. | $ 112,200 | $ 8,000 |
Compute BMXâs amounts for each of these four taxes as applied to the employeeâs gross earnings for September under each of three separate situations (a), (b), and (c). (Round your answers to 2 decimal places.)
a.)
| Tax | September Earnings Subject to Tax | Tax Rate | Tax Amount |
| FICA-Social Security | |||
| FICA-Medicare | |||
| FUTA | |||
| SUTA |
b.)
| Tax | September Earnings Subject to Tax | Tax Rate | Tax Amount |
| FICA-Social Security | |||
| FICA-Medicare | |||
| FUTA | |||
| SUTA |
c.)
| Tax | September Earnings Subject to Tax | Tax Rate | Tax Amount |
| FICA-Social Security | |||
| FICA-Medicare | |||
| FUTA | |||
| SUTA |
d.) Assuming situation a, prepare the employerâs September 30 journal entries to record salary expense and its related payroll liabilities for this employee. The employeeâs federal income taxes withheld by the employer are $80 for this pay period. (Round your answers to 2 decimal places.)
Taxes to be Withheld From Gross Pay (Employee-Paid Taxes)
| September Earnings Subject to Tax | Tax Rate | Tax Amount | |
| Federal income tax | |||
| ------------------------- | ---------------------------------------------- | ----------- | Total: |
e. Prepare the employer's September 30 journal entry to record accrued salary expense and its related payroll liabilities for this employee.
| DATE | GENERAL JOURNAL | DEBIT | CREDIT |
| Sep 30 | |||
f.) Assuming situation a, prepare the employerâs September 30 journal entries to record the employerâs payroll taxes expense and its related liabilities. (Round your answers to 2 decimal places.)
| Employer Payroll Taxes | September earnings subject to tax | Tax Rate | Tax Amount |
| ------------------------------ | --------------------------------------------- | ----------- | Total: |
g.)
| DATE | GENERAL JOURNAL | DEBIT | CREDIT |
| Sep 30 | |||
Problem Information
Use the following tax rates and taxable wage bases: Employees' and Employer's OASDIâ6.2% both on $118,500; HIâ1.45% for employees and employers on the total wages paid. Employees' Supplemental HI of 0.9% on wages in excess of $200,000 was not applicable.
At Haddon, Inc., the office workers are employed for a 40-hour workweek and are paid on either an annual, monthly, or hourly basis. All office workers are entitled to overtime pay for all hours worked beyond 40 each workweek at 1.5 times the regular hourly rates.
Company records show the following information for the week ended December 26, 20--.
| Employee | Salary | Hrs. Worked | Cumulative Taxable Wages as of Last Pay Period (12/19/--) | ||||||||
| OFFICE | King, M. | $119,600.00 per year | 40 | $117,300.00 | |||||||
| Manera, E. | $6,500.00 per month | 40 | $76,500.00 | ||||||||
| Tate, S. | $3,900.00 per month | 48 | $45,900.00 | ||||||||
| Yee, L. | $12.50 per hour | 44.5 | $27,675.13 | ||||||||
| PLANT | Diaz, R. | $12.50 per hour | 48 | $14,778.96 | |||||||
| Zagst, J. | $14.50 per hour | 52 | $24,703.02 | ||||||||
On the form below, calculate for each worker: (a) regular earnings, (b) overtime earnings, (c) total regular and overtime earnings, (d) FICA taxable wages, (e) FICA taxes to be withheld, and (f) net pay for the week ended December 26, 20--. Assume that there are 52 weekly payrolls in 20--. Also, determine the total where indicated. Round your answers to the nearest cent and use those rounded amounts in subsequent calculations. If an amount box does not require an entry, leave it blank.
| Weekly Payroll for Period Ending December 26, 20-- | |||||||||||
| Employee | Salary | Hrs. Worked | Regular Earnings (A) | Overtime Earnings (B) | Total Reg. and O/T Earnings (C) | Cum. Taxable Wages as of Last Pay Period (12/19/--) | FICA Taxable Wages This Pay Period (D) | FICA Taxes to be Withheld (E) | Net Pay (F) | ||
| OASDI | HI | OASDI | HI | ||||||||
| OFFICE: King, M. | $119,600.00 per year | 40 | $ | $ | $ | $117,300.00 | $ | $ | $ | $ | $ |
| Manera, E. | $6,500.00 per mo. | 40 | $76,500.00 | ||||||||
| Tate, S. | $3,900.00 per mo. | 48 | $45,900.00 | ||||||||
| Yee, L. | $12.50 per hr. | 44.5 | $27,675.13 | ||||||||
| PLANT: Diaz, R. | $12.50 per hr. | 48 | $14,778.96 | ||||||||
| Zagst, J. | $14.50 per hr. | 52 | $24,703.02 | ||||||||
| Totals | .... | .... | $ | $ | $ | .... | $ | $ | $ | $ | $ |
Employer's FICA Taxes:
| OASDI: | $ |
| HI: | $ |
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 | |||||
