CHAPTER 8 Applying Youn Knowledge 307 Marital Total Weekly Earnings $447.60 Number of Allowances Amount of Withholding Status (a) (b) (c) (d) 2. 451.50 M. 481.15 490.52 2. (e) 691.89 E 8-4A / 3d row, Soc. Sec. tax: $161.20 (LO2) CALCULATING SOCIAL SECURITY AND MEDICARE TAXES Assume a Social Security tax rate of 6.2% is applied to maximum earnings of $128,400 and a Medicare tax rate of 1.45% is applied to all earnings. Calculate the Social Security and Medicare taxes for the following situations: (128400-125800)x6.22 Cumul. Pay Before Current Current Amount COver Amount Medicare Soc. Sec. Тах Subject to Soc. Sec. Gross Soc. Sec. Maximum Year-to-Date Max. Тах Weekly Payroll $ 22,000 Withheld Withheld Pay $1,700 Earnings Soc. Sec. 105.40 260.40 161.20 223.20 6670 24.65 60.90 56.91 $128,400 54,000 4,200 128,400 125,800 3,925 128,400 127,800 4,600 128,400 nig COMPUTING NET PAY Mary Sue Guild works for a company that pays its employ- ees 1½ times the regular rate for all hours worked in excess of 40 per week. Guild’s pay rate is $14.50 per hour. Her wages are subject to deductions for federal income 00.21 tax, Social Security tax, and Medicare tax. She is married and claims four withhold- 000ing allowances. Guild has a 2-hour lunch break during an 8½-hour day. Her time E 8-5A / Net pay: $639.15 (LO2) card is shown below. 00.2 LC0Name Mary Sue Guild Week Ending March 30, 20-- 00.08 Hours Worked 00 In Out In Out Day Regular Overtime 00.001 12:35 4:33 8. 7:57 12:05 7:52 12:09 12:39 5:05 12:15 12:45 5:30 7:59 12:30 6:31 8. 8:00 12:01 12:34 4:30 8. 7:56A 2 12:05 22 8:00 10:31 bieg (continued d no onS olge MTWTES Accounting for Cash and Payroll Complete the following for the week: (a) to regular hours × $14.50 per hour $ _ 580 130.5 (Ь) overtime hours × $21.75 per hour %$4 $4 (c) Total gross wages $_710,5 (d) Federal income tax withholding (from tax tables in Figure 8-4, pages 288 and 289) 16 24 (e) Social Security withholding at 6.2% $_44.05 $_10.30 (f) Medicare withholding at 1.45% TAJ (g) Total withholding $_'70. (h) Net pay $640.15 JOURNALIZING PAYROLL TRANSACTIONS On December 31, the payroll register of Hamstreet Associates indicated the following information:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E8-4A, 5A

CHAPTER 8
Applying Youn Knowledge
307
Marital
Total Weekly
Earnings
$447.60
Number of
Allowances
Amount of
Withholding
Status
(a)
(b)
(c)
(d)
2.
451.50
M.
481.15
490.52
2.
(e)
691.89
E 8-4A
/ 3d row, Soc. Sec. tax: $161.20
(LO2)
CALCULATING SOCIAL SECURITY AND MEDICARE TAXES Assume a Social
Security tax rate of 6.2% is applied to maximum earnings of $128,400 and a Medicare
tax rate of 1.45% is applied to all earnings. Calculate the Social Security and Medicare
taxes for the following situations:
(128400-125800)x6.22
Cumul. Pay
Before Current
Current
Amount COver
Amount
Medicare
Soc. Sec.
Тах
Subject to
Soc. Sec.
Gross
Soc. Sec.
Maximum
Year-to-Date
Max.
Тах
Weekly Payroll
$ 22,000
Withheld
Withheld
Pay
$1,700
Earnings
Soc. Sec.
105.40
260.40
161.20
223.20 6670
24.65
60.90
56.91
$128,400
54,000
4,200
128,400
125,800
3,925
128,400
127,800
4,600
128,400
nig
COMPUTING NET PAY Mary Sue Guild works for a company that pays its employ-
ees 1½ times the regular rate for all hours worked in excess of 40 per week. Guild’s
pay rate is $14.50 per hour. Her wages are subject to deductions for federal income
00.21 tax, Social Security tax, and Medicare tax. She is married and claims four withhold-
000ing allowances. Guild has a 2-hour lunch break during an 8½-hour day. Her time
E 8-5A
/ Net pay: $639.15
(LO2)
card is shown below.
00.2
LC0Name
Mary Sue Guild
Week Ending
March 30, 20--
00.08
Hours Worked
00
In
Out
In
Out
Day
Regular
Overtime
00.001
12:35
4:33
8.
7:57
12:05
7:52
12:09
12:39
5:05
12:15
12:45
5:30
7:59
12:30
6:31
8.
8:00
12:01
12:34
4:30
8.
7:56A 2 12:05
22
8:00 10:31
bieg
(continued
d no onS
olge
MTWTES
Transcribed Image Text:CHAPTER 8 Applying Youn Knowledge 307 Marital Total Weekly Earnings $447.60 Number of Allowances Amount of Withholding Status (a) (b) (c) (d) 2. 451.50 M. 481.15 490.52 2. (e) 691.89 E 8-4A / 3d row, Soc. Sec. tax: $161.20 (LO2) CALCULATING SOCIAL SECURITY AND MEDICARE TAXES Assume a Social Security tax rate of 6.2% is applied to maximum earnings of $128,400 and a Medicare tax rate of 1.45% is applied to all earnings. Calculate the Social Security and Medicare taxes for the following situations: (128400-125800)x6.22 Cumul. Pay Before Current Current Amount COver Amount Medicare Soc. Sec. Тах Subject to Soc. Sec. Gross Soc. Sec. Maximum Year-to-Date Max. Тах Weekly Payroll $ 22,000 Withheld Withheld Pay $1,700 Earnings Soc. Sec. 105.40 260.40 161.20 223.20 6670 24.65 60.90 56.91 $128,400 54,000 4,200 128,400 125,800 3,925 128,400 127,800 4,600 128,400 nig COMPUTING NET PAY Mary Sue Guild works for a company that pays its employ- ees 1½ times the regular rate for all hours worked in excess of 40 per week. Guild’s pay rate is $14.50 per hour. Her wages are subject to deductions for federal income 00.21 tax, Social Security tax, and Medicare tax. She is married and claims four withhold- 000ing allowances. Guild has a 2-hour lunch break during an 8½-hour day. Her time E 8-5A / Net pay: $639.15 (LO2) card is shown below. 00.2 LC0Name Mary Sue Guild Week Ending March 30, 20-- 00.08 Hours Worked 00 In Out In Out Day Regular Overtime 00.001 12:35 4:33 8. 7:57 12:05 7:52 12:09 12:39 5:05 12:15 12:45 5:30 7:59 12:30 6:31 8. 8:00 12:01 12:34 4:30 8. 7:56A 2 12:05 22 8:00 10:31 bieg (continued d no onS olge MTWTES
Accounting for Cash and Payroll
Complete the following for the week:
(a)
to
regular hours × $14.50 per hour
$ _ 580
130.5
(Ь)
overtime hours × $21.75 per hour
%$4
$4
(c) Total gross wages
$_710,5
(d) Federal income tax withholding (from tax tables in
Figure 8-4, pages 288 and 289)
16
24
(e) Social Security withholding at 6.2%
$_44.05
$_10.30
(f) Medicare withholding at 1.45%
TAJ
(g) Total withholding
$_'70.
(h) Net pay
$640.15
JOURNALIZING PAYROLL TRANSACTIONS On December 31, the payroll register
of Hamstreet Associates indicated the following information:
Transcribed Image Text:Accounting for Cash and Payroll Complete the following for the week: (a) to regular hours × $14.50 per hour $ _ 580 130.5 (Ь) overtime hours × $21.75 per hour %$4 $4 (c) Total gross wages $_710,5 (d) Federal income tax withholding (from tax tables in Figure 8-4, pages 288 and 289) 16 24 (e) Social Security withholding at 6.2% $_44.05 $_10.30 (f) Medicare withholding at 1.45% TAJ (g) Total withholding $_'70. (h) Net pay $640.15 JOURNALIZING PAYROLL TRANSACTIONS On December 31, the payroll register of Hamstreet Associates indicated the following information:
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