Elizabeth's regular hourly wage rate is $22, and she receives an hourly rate of $33 for work in excess of 40 hours. During a January pay period, Elizabeth works 49 hours Elizabeth's federal income tax withholding is $97, and she has no voluntary deductions. Prepare the employer's journal entry to record payroll taxes for the period. Ignore unemployment taxes. Assume the FICA tax rate is 7.65%. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round the answers to 2 decimal places, eg. 15.25) Date Jan. 15 Account Titles and Explanation Payroll Tax Expense FICA Taxes Payable Debit 98.30 Credit 98.30

Elizabeth's regular hourly wage rate is $22, and she receives an hourly rate of $33 for work in excess of 40 hours. During a January pay period, Elizabeth works 49 hours Elizabeth's federal income tax withholding is $97, and she has no voluntary deductions. Prepare the employer's journal entry to record payroll taxes for the period. Ignore unemployment taxes. Assume the FICA tax rate is 7.65%. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round the answers to 2 decimal places, eg. 15.25) Date Jan. 15 Account Titles and Explanation Payroll Tax Expense FICA Taxes Payable Debit 98.30 Credit 98.30

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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If a taxpayer works for more than one employer during the year, how much in FUTA taxes is remitted in the name of the taxpayer? Multiple Choice If the employee earns less than $7,000 at the first job, the next employer must remit FUTA taxes until the employee has earned a total of $7,000. If the employee earns more than $7,000 at the first job, all other employers are exempt from paying FUTA taxes for this employee during the year. Only the first employer is required to remit FUTA taxes on the wages earned. Both employers must remit FUTA taxes they pay to the employee on the first $7,000 of wages earned by the employee at each job.
Youngston Company (a Massachusetts employer) wants to give a holiday bonus check of $750 to each employee. Since it wants the check amount to be $750, it will need to gross-up the amount of the bonus. Calculate the withholding taxes and the gross amount of the bonus to be made to Genna Fredrich if her earnings for the year are $55,920. Besides being subject to social security taxes and federal income tax (supplemental rate), a 5.00% Massachusetts income tax must be withheld on supplemental payments........? Compute the gross bonus amount and various amounts deducted to arrive at the net bonus check of $750. Present your computation vertically in a single column. Show supporting computations.
The payroll records of Speedy Software show the following information about Marsha Gottschalk, an employee, for the weekly pay period ending September 30. Gottschalk is single and claims one allowance. Compute her Social Security tax (6.2%), Medicare tax (1.45%), federal income tax withholding (use the withholding table in Exhibit 11A.6), state income tax (1.0%), and net pay for the current Day period.
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