Lee Werner is general manager of Stoneybrook Salons. During 2024, Werner worked for the company all year at a $12,900 monthly salary. He also earned a year-end bonus equal to 20% of his annual salary. Werner's federal income tax withheld during 2024 was $4,128 per month, plus $6,811 on his bonus check. State income tax withheld came to $120 per month, plus $80 on the bonus. FICA tax was withheld on the annual earnings. Werner authorized the following payroll deductions: Charity Fund contribution of 4% of total earnings and life insurance of $50 per month. Requirement 1. Compute Werner's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar. Begin by computing Werner's gross pay for the year. (Round all amounts to the nearest dollar.) Gross pay: Gross Pay Requirements 1. Compute Werner's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar. 2. Compute Stoneybrook's total 2024 payroll tax expense for Werner. 3. Make the journal entry to record Stoneybrook's expense for Werner's total earnings for the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus Expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required. 4. Make the journal entry to record the accrual of Stoneybrook's payroll tax expense for Werner's total earnings. 5. Make the journal entry for the payment of the payroll withholdings and taxes. Print Done More info Stoneybrook incurred payroll tax expense on Werner for FICA tax. The company also paid state unemployment tax and federal unemployment tax. i (Click the icon to view payroll tax rate information.) Read the requirements. For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. Print Done - X
Lee Werner is general manager of Stoneybrook Salons. During 2024, Werner worked for the company all year at a $12,900 monthly salary. He also earned a year-end bonus equal to 20% of his annual salary. Werner's federal income tax withheld during 2024 was $4,128 per month, plus $6,811 on his bonus check. State income tax withheld came to $120 per month, plus $80 on the bonus. FICA tax was withheld on the annual earnings. Werner authorized the following payroll deductions: Charity Fund contribution of 4% of total earnings and life insurance of $50 per month. Requirement 1. Compute Werner's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar. Begin by computing Werner's gross pay for the year. (Round all amounts to the nearest dollar.) Gross pay: Gross Pay Requirements 1. Compute Werner's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar. 2. Compute Stoneybrook's total 2024 payroll tax expense for Werner. 3. Make the journal entry to record Stoneybrook's expense for Werner's total earnings for the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus Expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required. 4. Make the journal entry to record the accrual of Stoneybrook's payroll tax expense for Werner's total earnings. 5. Make the journal entry for the payment of the payroll withholdings and taxes. Print Done More info Stoneybrook incurred payroll tax expense on Werner for FICA tax. The company also paid state unemployment tax and federal unemployment tax. i (Click the icon to view payroll tax rate information.) Read the requirements. For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. Print Done - X
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 10PA: Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and...
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Question
Transcribed Image Text:Lee Werner is general manager of Stoneybrook Salons. During 2024, Werner worked for the company all year at a $12,900 monthly
salary. He also earned a year-end bonus equal to 20% of his annual salary. Werner's federal income tax withheld during 2024 was $4,128
per month, plus $6,811 on his bonus check. State income tax withheld came to $120 per month, plus $80 on the bonus. FICA tax was
withheld on the annual earnings. Werner authorized the following payroll deductions: Charity Fund contribution of 4% of total earnings and
life insurance of $50 per month.
Requirement 1. Compute Werner's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar.
Begin by computing Werner's gross pay for the year. (Round all amounts to the nearest dollar.)
Gross pay:
Gross Pay
Requirements
1. Compute Werner's gross pay, payroll deductions, and net pay for the full year
2024. Round all amounts to the nearest dollar.
2. Compute Stoneybrook's total 2024 payroll tax expense for Werner.
3. Make the journal entry to record Stoneybrook's expense for Werner's total
earnings for the year, his payroll deductions, and net pay. Debit Salaries
Expense and Bonus Expense as appropriate. Credit liability accounts for the
payroll deductions and Cash for net pay. An explanation is not required.
4. Make the journal entry to record the accrual of Stoneybrook's payroll tax
expense for Werner's total earnings.
5. Make the journal entry for the payment of the payroll withholdings and taxes.
Print
Done
More info
(
Employee:
Employer:
Stoneybrook incurred payroll tax expense on Werner for FICA tax. The company also paid state unemployment tax and federal
unemployment tax.
(Click the icon to view payroll tax rate information.)
Read the requirements.
For all payroll calculations, use the following tax rates and round amounts to the
nearest cent:
OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to
$200,000, 2.35% on earnings above $200,000.
OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA:
0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned.
Print
Done
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