The following information pertains to a weekly payroll of Texera Tile Company:
a. The total wages earned by employees are $17,340.
b. The state unemployment insurance contribution rate is 3.5%.
c. The entire amount of wages is taxable under FICA, FUTA, and SUTA.
d. The amount withheld from the employees' wages for federal income taxes is $1,850; for state income taxes, $373.10; and for group insurance, $189.00.
Payment of Wages and the Payroll Taxes
Journalize the payment of wages, and record the payroll taxes for this payroll.
If an amount box does not require an entry, leave it blank or enter "0". Round your answers to the nearest cent.
Account Debit Credit Payment of wages Wages Expense FICA Taxes Payable-OASDI FICA Taxes Payable-HI Employees FIT Payable Employees SIT Payable Group Insurance Premiums Collected Cash Payroll taxes Payroll Taxes FICA Taxes Payable-OASDI FICA Taxes Payable-HI FUTA Taxes Payable SUTA Taxes Payable
The following information pertains to a weekly payroll of Texera Tile Company:
a. The total wages earned by employees are $17,340.
b. The state unemployment insurance contribution rate is 3.5%.
c. The entire amount of wages is taxable under FICA, FUTA, and SUTA.
d. The amount withheld from the employees' wages for federal income taxes is $1,850; for state income taxes, $373.10; and for group insurance, $189.00.
Payment of Wages and the Payroll Taxes
Journalize the payment of wages, and record the payroll taxes for this payroll.
If an amount box does not require an entry, leave it blank or enter "0". Round your answers to the nearest cent.
| Account | Debit | Credit | |
| Payment of wages | Wages Expense | ||
| FICA Taxes Payable-OASDI | |||
| FICA Taxes Payable-HI | |||
| Employees FIT Payable | |||
| Employees SIT Payable | |||
| Group Insurance Premiums Collected | |||
| Cash | |||
| Payroll taxes | Payroll Taxes | ||
| FICA Taxes Payable-OASDI | |||
| FICA Taxes Payable-HI | |||
| FUTA Taxes Payable | |||
| SUTA Taxes Payable |
Related questions
| Apr. | 1. | Paid the treasurer of the union the amount of union dues withheld from workers' earnings during March. | |
| 15. | Payroll: $6,105. All wages and salaries taxable. Withheld $565 for federal income taxes, $107.32 for state income taxes, and $50 for union dues. | ||
| 15. | Paid the treasurer of the state the amount of state income taxes withheld from workers' earnings during the first quarter. | ||
| 15. | Electronically transferred funds to remove the liability for FICA taxes and employees' federal income taxes withheld on the March payrolls. | ||
| 29. | Payroll: $5,850. All wages and salaries taxable. Withheld $509 for federal income taxes, $128.90 for state income taxes, and $55 for union dues. | ||
| 29. | Filed the Employer's Quarterly Federal Tax Return (Form 941) for the period ended March 31. No journal entry is required, since the FICA taxes and federal income taxes withheld have been timely paid. | ||
| 29. | Filed the state contribution return for the quarter ended March 31 and paid the amount to the state unemployment compensation fund. | ||
| May | 2. | Paid the treasurer of the union the amount of union dues withheld from workers' earnings during April. | |
| 13. | Payroll: $5,810. All wages and salaries taxable. Withheld $507 for federal income taxes, $125.05 for state income taxes, and $55 for union dues. | ||
| 16. | Electronically transferred funds to remove the liability for FICA taxes and federal income taxes withheld on the April payrolls. | ||
| 31. | Payroll: $6,060. All wages and salaries taxable. Withheld $533 for federal income taxes, $119.00 for state income taxes, and $50 for union dues. | ||
| June | 3. | Paid the treasurer of the union the amount of union dues withheld from workers' earnings during May. | |
| 15. | Payroll: $6,380. All wages and salaries taxable, except only $5,000 is taxable under FUTA and SUTA. Withheld $549 for federal income taxes, $128.70 for state income taxes, and $50 for union dues. | ||
| 15. | Electronically transferred funds to remove the liability for FICA taxes and federal income taxes withheld on the May payrolls. | ||
| 30. | Payroll: $6,250. All wages and salaries taxable, except only $4,770 is taxable under FUTA and SUTA. Withheld $538 for federal income taxes, $127.60 for state income taxes, and $50 for union dues. |
The following are the account balances forwarded as of June 1:
(1) Union Due Payable: $105
(2) Employees SIT Payable: $480.27
(3) FICA Taxes Payable - OASDI: $1,471.88
(4) FICA Taxes Payable - HI: $344.24
(5) Employees FIT Payable: $1,040.00
(6) FUTA Taxes Payable: $292.11
(7) SUTA Taxes Payable: $547.98
(8) Cash: $31,805.77
(9) Wages and Salaries: $95,185.00
(10) Payroll taxes: $9,360.29
Note: The SUTA tax rate is 2.3%.
a. Analyze and journalize the transactions described in the narrative above. If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest cent.
| GENERAL JOURNAL | PAGE 21 | |||
|---|---|---|---|---|
| DATE | DESCRIPTION | DEBIT | CREDIT | |
| 20-- | ||||
| Jun. 3 | ||||
| Jun. 15-Payroll | ||||
| Jun. 15-Taxes | ||||
| Jun. 15-Federal Taxes | ||||
| Jun. 30-Payroll | ||||
| Jun. 30-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 | $ | ||||||||||
