Payroll Tax Entries) Below is a payroll sheet for Otis ImportCompany for the month of September
2010. The company is allowed a 1% unemployment compensation rate bythe state; the federal
unemployment tax rate is 0.8% and the maximum for both is $7,000.Assume a 10% federal income tax
rate for all employees and a 7.65% F.I.C.A. tax on employee andemployer on a maximum of $102,000. In
addition, 1.45% is charged both employer and employee for anemployee
2010. The company is allowed a 1% unemployment compensation rate bythe state; the federal
unemployment tax rate is 0.8% and the maximum for both is $7,000.Assume a 10% federal income tax
rate for all employees and a 7.65% F.I.C.A. tax on employee andemployer on a maximum of $102,000. In
addition, 1.45% is charged both employer and employee for anemployee
Related questions
| Below is a payroll sheet for Otis Import Company for the month of September 2017. The | |||||||
| company is allowed a | 5.40% | unemployment compensation rate by the state; the federal unemployment | |||||
| tax rate is | 0.60% | and the maximum for both is | $9,000 | . Assume a | 12% | federal | |
| income tax rate for all employees and a | 7.65% | FICA tax on employee and employer on a maximum of | |||||
| $118,500 | . In addition, | 1.45% | is charged both employer and employee for an employeeâs wages in excess | ||||
| of | $118,500 | per employee. | |||||
| Name | Earnings to Aug 31 | September Earnings | Income Tax Withholding | F.I.C.A. | State U.C. | Federal U.C. | |
| B.D. Williams | $8,600 | $900 | |||||
| D. Raye | 8,100 | 750 | |||||
| K. Baker | 9,800 | 1,200 | |||||
| F. Lopez | 13,600 | 1,800 | |||||
| A. Daniels | 109,000 | 12,600 | |||||
| B. Kingston | 113,000 | 18,000 | |||||
| Instructions: | |||||||||||||||||||||||||||||||
| (a) Complete the payroll sheet and make the necessary entry to record the payment of the payroll
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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 |
