Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,500 each week. Additional tax information includes:     FICA tax—OASDI 6.2% on first $132,900   FICA tax—HI 1.45% on total pay   Federal income tax $232.00 per pay   State income tax 22% of the federal income tax withholding   Federal unemployment tax 0.6% on first $7,000   State unemployment tax 0.05% on first $14,000

Q: Federal Income Tax Withholding Bob Avery's weekly gross earnings for the present week were $2,390.…

A: The applicable wages for tax withholding is the difference of the gross earnings and the exemption…

Q: K Stone's gross pay for the week is $1,300. Stone's year-to-date pay is under the limit for OASDI.…

A: Payroll Tax: Any tax that is deducted from, assessed on, or levied against an employer's salary is…

Q: Borden Company received a federal tax levy on John Kline. Kline is single, claims 2 personal…

A: Federal tax levy is the tax levied by the employer and deduct tax on the salary withdrawn.

Q: Maze Company has one employee that is paid $1,000 weekly. All of the employee's wages are subject to…

A: Payroll tax expense is the amount if tax charged on the payroll paid to the employees. It includes…

Q: Employee Salary Hrs. Worked Regular Earnings (A) Overtime Earnings (B) Total Reg. and O/T Earnings…

A: Employees' and Employer's OASDI—6.2% both on $137,700 = $8,537 HI—1.45% for employees and employers…

Q: CFG Company has the following employees: Wages Paid $ 16,000 3,500 25,000 Eddie Melanie Shelly CFG…

A: FUTA Taxes are payable @6% for First 7000 Wages. After 7000 Taxes are not applicable.   FUTA Taxes…

Q: Gary Marks is paid on a monthly basis. For the month of January of the current year, he earned a…

A: Payroll Taxes = FICA SS Tax + FICA Medicare Tax + FUTA Tax + SUTA Tax= 544.87+ 127.42 + 42 +…

Q: The SUTA rate for Thomson Temp Agency is 5.4% and its FUTA rate is 6% less the 5.4% SUTA credit. If…

A: SUTA credit is to be reduced from FUTA rate to find correct FUTA rate after credit of SUTA.

Q: For all payroll calculations, use the following tax rates and round amounts to the nearest cent…

A:

Q: Assume FICA tax rate of 6.2% on the first $132,900 in wages, plus 1.45% Medicare tax on all…

A: Net pay is the sum of money that an employee receives in hand. It is determined after subtracting…

Q: Ana Rosa, president of the Apoka Company, has a bonus arrangement with the company under which she…

A: Bonus = net income x rate100 + rate  Provision  for income tax = ( net income - bonus ) x tax rate…

Q: Federal Income Tax Withholding Bob Wolfe's weekly gross earnings for the present week were $2,870.…

A: The time period withholding tax refers back to the cash that an organization deducts from a worker’s…

Q: 8. Antwan Campbell earns $494 per week. He is married and claims 1 child as a dependent. The state…

A: Antwan Campbell Earnings : $494 per week  Status : Married State tax rate : 2.25%

Q: Kip Lee is owner and sole employee of KB Corporation.  He pays himself a salary of $1,500 each week…

A: Payroll refers to the business's accounting record of all payments made by the employer to the…

Q: 7. You are the marketing manager for Pointer Plumbing. You are earning an annual salary of $41,600.…

A: With holding allowances: It is  an exemption and reduces income tax liability of an employee

Q: urd LLC has two employees Thomas and Marsha who are paid $ !5,500 and $2, 500 respectively. If the…

A: Step 1 A payroll tax is an amount deducted from an employee's salary that is paid to the government…

Q: Holden Simpson manages a Dairy Land drive-in. His straight-time pay is $16 per hour, with…

A: Computation of gross pay 40 * $16 + [(51 - 40hrs) * $16 *1.5] $640 + $264 $904  Computation of Net…

Q: Davis and Thompson have earnings of $850 each.  The social security tax rate is 6% and the Medicare…

A: Medicare tax for Employee and Employer = Earnings x Medicare tax rate x 2 = $850 x 1.5% x 2 = $25.50

Q: For all payroll calculations, use the following tax rates and round amounts to the nearest cent…

A: 1.Prepare journal entry to record sales.

Q: Use the following information to calculate the federal average tax rate (ignore tax credits) for a…

A: It is the rate at which the tax is payable on the total income on the average basis. The average tax…

Q: Mary Ehrat, an employee of Waterway Company, has gross earnings for the month of October of $11000.…

A: FICA taxes = Gross earnings x FICA tax rate= $11,000 x 7.65%= $841State income tax = Gross earnings…

Q: Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,500 each…

A: The amount that the employers pays the employee is known as gross wages and there are a lot of…

Q: 1: Armand Giroux (single; 0 federal withholding allowances) earned weekly gross pay of $1,445. For…

A: Since you have posted multiple independent questions, we are answering  the first question. Please…

Q: Lappiince company has three installers. Larry earns $315 per week, Curly earns $470 per week, and…

A: According to the question given, we need to compute the total SUTA and FUTA taxes.Unemployment…

Q: Bob Avery's weekly gross earnings for the present week were $2,550. Avery has three exemptions.…

A: Federal income tax withholding is the amount that is withheld by the employer from the employee's…

Q: Bob Avery's weekly gross earnings for the present week were $2,880. Avery has four exemptions. Using…

A: Note: As the question does not specify any year or rates that are to be used for solving this, thus,…

Q: For all payroll calculations, use the following tax rates and round amounts to the nearest cent…

A: Vacation expense: Vacation expense is an estimated expense for the company which the company should…

Q: 30. Banner Company had the following payroll data for the year: $900,000 100,000 610,000 Gross…

A: Gross earnings for (FICA tax rate ) = Gross earnings of employees + Employee earnings subject to…

Q: A company's employer payroll tax rates are 0.6%% for federal unemployment taxes, 5.4% for state…

A: Solution:

Q: Record the payroll entry and payroll tax entry for the pay of the week ended June 7 (his…

A: Tax refers to the amount charged by the government on individuals, partnership firms, HUF’s or any…

Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.