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 salaries expense and the payment related to the employment of Sienna Watson. (Record debits first, then credits Begin with the entry to accrue salaries expense and payroll withholdings for Sienna Watson. (Round all amounts to the nearest cent.) Date Accounts and Explanation Debit Credit More info Print Done For all payroll calculations, use the following tax rates and round amounts to the nearest cent Employee: OASDI 6.2% on first $132,900 eamed, Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer 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
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 salaries expense and the payment related to the employment of Sienna Watson. (Record debits first, then credits Begin with the entry to accrue salaries expense and payroll withholdings for Sienna Watson. (Round all amounts to the nearest cent.) Date Accounts and Explanation Debit Credit More info Print Done For all payroll calculations, use the following tax rates and round amounts to the nearest cent Employee: OASDI 6.2% on first $132,900 eamed, Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer 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
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 50P
Related questions
Question
Transcribed Image Text: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 salaries expense and the payment related to the employment of Sienna Watson. (Record debits first, then credits
Begin with the entry to accrue salaries expense and payroll withholdings for Sienna Watson. (Round all amounts to the nearest cent.)
Date
Accounts and Explanation
Debit
Credit
More info
Print
Done
For all payroll calculations, use the following tax rates and round amounts to the
nearest cent
Employee: OASDI 6.2% on first $132,900 eamed, Medicare: 1.45% up to
$200,000, 2.35% on earnings above $200,000.
Employer
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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