**....More infoFor all payroll calculations, use the following tax rates and round amounts to thenearest cent:Employee: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% up to$200,000, 2.35% on earnings above $200,000.Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% on allearnings; FUTA: 0.6% on first S7,000 earned; SUTA: 5.4% on first$7,000 earned. Lucy Rose works at College of Fort Worth and is paid $12 per hour for a 40-hour workweek and time-and-a-half for hours above 40.A (Click the icon to view payroll tax rate information.)Read the requirements.Requirement 2. Rose is single, and her income tax withholding is 15% of total pay. Rose's only payroll deductions are payroll taxes. Compute Rose's net (take-home) pay for the week. Assume Rose's earnings to date are lessthan the OASDI limit. (Round all amounts to the nearest cent.)Withholding deductions:Net (take-home) payRequirement 3. Journalize the accrual of wages expense and the payments related to the employment of Lucy Rose. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)Begin with the entry to accrue wages expense and payroll withholdings for Lucy Rose. (Round all amounts to the nearest cent.)DateAccounts and ExplanationDebitCredit

Payroll Payroll is an important element in the entity and the management of the payroll system is…

For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% on all earnings; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned.

For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% on all earnings; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned.

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter7: Employee Earnings And Deductions

Section: Chapter Questions

Problem 2E

See similar textbooks

Similar questions

Darrell is an employee of Whitneys. During the current year, Darrells salary is 136,000. Whitneys net self-employment income is also 136,000. Calculate the Social Security and self-employment taxes paid by Darrell and Whitney. Write a letter to Whitney in which you state how much she will have to pay in Social Security and self-employment taxes and why she owes those amounts.
Precision Labs has two employees. The following information was taken from its individual earnings records for the month of September. Determine the missing amounts assuming that the Social Security tax is 6.2 percent, the Medicare tax is 1.45 percent, and the state income tax is 20 percent of the federal income tax. Assume that the employees are married and have one withholding allowance. All earnings are subject to Social Security and Medicare taxes. Round amounts to the nearest penny.
Sienna Watson works for MRK all year and earns a monthly salary of $12,200. There is no overtime pay. Sienna's income tax withholding rate is 12% of gross pay. In addition to payroll taxes, Sienna elects to contribute 1% monthly to United Way for co-payment of the health insurance premium. As of September 30, Sienna had $122,000 of cumulative earnings. (Click the icon to view payroll tax rate information.) Read the requirements. Requirements Requirement 1. Compute Sienna's net pay for October. (Round all amounts to the nearest cent.) Gross pay Withholding deductions: Employee income tax $ 12,200.00 1. Compute Sienna's net pay for October 2. Journalize the accrual of salaries expense and the payment related to the employment of Sienna Watson Employee OASDI tax Employee Medicare tax Employee contribution to United Way Employee health insurance Total withholdings Net (take-home) pay $ 1,464.00 675.80 176.90 122.00 300.00 2,738.70 $ 9,461,30 Requirement 2. Journalize the accrual of…
Use the percentage method of income tax calculation to complete the payroll roster (in $). David Grange is married and claims 4 withholding allowances. If he is paid biweekly and earns $1,848 per period, use the percentage method to find his income tax withholding each pay period. (Use Exhibit 9-1 and Exhibit 9-2 from your text. Round your answer to the nearest cent.) $____________