provided below, prepare the weekly payroll for Sydney's Spokes. Hourly # IRA Health Tax

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter8: Budgets And Bank Reconciliations
Section: Chapter Questions
Problem 1.1C
icon
Related questions
Question
1. (40) Sydney's Spokes is a local bike shop. Sydney has 5 employees. The
business does quite well; a favorite in the community. Using the information
provided below, prepare the weekly payroll for Sydney's Spokes.
Name
Bonnie
Abbie
Rosie
Gracie
Lola
Hourly
Wage
$8
$8
$8
$9
$12
#
Hours
40
42 40 45 48
IRA
Amount
None
None
None
None
$100
Health
Ins
None
None
None
$50
$50
Tax
W'held
$40
$42
$40
$60
$80
Sydney pays 150% for hours worked beyond 40 in a week
Sydney matches any IRA and Health Insurance payments made by her employees.
The Social Security/Medicare rate is 7.65%.
The State Unemployment Tax rate is 1.5%.
The Federal Unemployment Tax rate is 0.5%
She withholds amounts for federal income tax, as shown above.
a. What is the total amount earned by the employees (gross pay)?
b. How much will she pay to her employees (net pay)?
c. What is the total cost of the payroll to her business?
Transcribed Image Text:1. (40) Sydney's Spokes is a local bike shop. Sydney has 5 employees. The business does quite well; a favorite in the community. Using the information provided below, prepare the weekly payroll for Sydney's Spokes. Name Bonnie Abbie Rosie Gracie Lola Hourly Wage $8 $8 $8 $9 $12 # Hours 40 42 40 45 48 IRA Amount None None None None $100 Health Ins None None None $50 $50 Tax W'held $40 $42 $40 $60 $80 Sydney pays 150% for hours worked beyond 40 in a week Sydney matches any IRA and Health Insurance payments made by her employees. The Social Security/Medicare rate is 7.65%. The State Unemployment Tax rate is 1.5%. The Federal Unemployment Tax rate is 0.5% She withholds amounts for federal income tax, as shown above. a. What is the total amount earned by the employees (gross pay)? b. How much will she pay to her employees (net pay)? c. What is the total cost of the payroll to her business?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Payroll Audits
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Quickbooks Online Accounting
Quickbooks Online Accounting
Accounting
ISBN:
9780357391693
Author:
Owen
Publisher:
Cengage