None Problem 9-3A (Algo) Payroll expenses, withholdings, and taxes LO P2, P3Paloma Company has four employees. FICA Social Security taxes are 6.2% of the first $137,700 paid to each employee, and FICAMedicare taxes are 1.45% of gross pay. Also, for the first $7,000 paid to each employee, the company's FUTA taxes are 0.6% and SUTAtaxes are 5.4%. The company is preparing its payroll calculations for the week ended August 25. Payroll records show the followinginformation for the company's four employees.NameDaliTreyKieshaCheeGross Pay throughAugust 18$ 123,700135,3009,5003,450Current WeekGross PayIncome TaxWithholding$ 5,200$ 6252,4002661,8001,8006048In addition to gross pay, the company must pay one-half of the $108 per employee weekly health insurance; each employee pays theremaining one-half. The company also contributes an extra 8% of each employee's gross pay (at no cost to employees) to a pensionfund.Required:Compute the following for the week ended August 25Note: Round your intermediate calculations and final answers to 2 decimal places.1) Employees' FICA Withholdings for Social SecurityEmployeeEarningsSubject to TaxTax RateTax AmountTax RateDali$ 123,700.006.20%6.20% $7,669 40TreyKiesha135,300.006.20%8,388.609.500.006.20%589.00

Gross pay is the total amount that an employee earns for the work he/she does for the company.…

Paloma Company has four employees. FICA Social Security taxes are 6.2% of the first $137,700 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, for the first $7,000 paid to each employee, the company's FUTA taxes are 0.6% and SUTA taxes are 5.4%. The company is preparing its payroll calculations for the week ended August 25 Payroll records show the following information for the company's four employees. Current Week Income Tax Withholding Name Dali Trey Kiesha Chee Gross Pay through August 18 $ 123,700 135,300 9,500 3,450 Gross Pay $ 5,200 $ 625 2,400 266 60 48 1,800 1,800 In addition to gross pay, the company must pay one-half of the $108 per employee weekly health insurance; each employee pays the remaining one-half. The company also contributes an extra 8% of each employee's gross pay (at no cost to employees) to a pension fund. Required: Compute the following for the week ended August 25. Note: Round your intermediate calculations and final answers to 2 decimal places. 1) Employees' FICA Withholdings for Social Security

Paloma Company has four employees. FICA Social Security taxes are 6.2% of the first $137,700 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, for the first $7,000 paid to each employee, the company's FUTA taxes are 0.6% and SUTA taxes are 5.4%. The company is preparing its payroll calculations for the week ended August 25 Payroll records show the following information for the company's four employees. Current Week Income Tax Withholding Name Dali Trey Kiesha Chee Gross Pay through August 18 $ 123,700 135,300 9,500 3,450 Gross Pay $ 5,200 $ 625 2,400 266 60 48 1,800 1,800 In addition to gross pay, the company must pay one-half of the $108 per employee weekly health insurance; each employee pays the remaining one-half. The company also contributes an extra 8% of each employee's gross pay (at no cost to employees) to a pension fund. Required: Compute the following for the week ended August 25. Note: Round your intermediate calculations and final answers to 2 decimal places. 1) Employees' FICA Withholdings for Social Security

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 26CE: Payroll Taxes Hernandez Builders has a gross payroll for January amounting to $500,000. The...

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Payroll Taxes Hernandez Builders has a gross payroll for January amounting to $500,000. The following amount have been withheld: Also, the federal unemployment tax rate is 6.2% and applies to all but $50,000 of the gross payroll. Required: 1. What is the amount of net pay recorded by Hernandez? 2. Prepare the journal entries to record the payroll.
(a) Tax BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. noo FUTA SUTA Gross Pay through August 31 $6,400 2,700 133,300 Exercise 9-7 (Algo) Computing payroll taxes LO P2, P3 Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (c) Note: Round your answers to 2 decimal places. FICA-Social Security FICA-Medicare Gross Pay for September $ 1,700 2,800 9,900 $ September Earnings Subject to Tax 1.700.00 1.700.00 600.00 600 00 Tax Rate Tax Amount 6.20% $ 1:45% 0.60% 5.40% 105,40 24 65 3.60 32.40
Exercise 9-11 (Algo) Computing payroll taxes LO P2, P3 Mest Company has nine employees. FICA Social Security taxes are 6.2% of the first $137,700 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. Cumulative pay for the current year for each of its employees follows. Employee Ken S Tim V Steve S Cumulative Pay $ 6,400 50,400 97,000 Employee Julie W Michael M Zach R Cumulative Pay $ 153,500 116,900 137,700 Employee Christina S Kitty O Cumulative P $ 142,200 46,900 John W 6,800 a. Compute the amounts in this table for each employee. b. For the company, compute each total for FICA Social Security taxes, FICA Medicare taxes, FUTA taxes, and SUTA taxes. Hint. Remember to include in those totals any employee share of taxes that the company must collect. Complete this question by entering your answers in the tabs below. Required A Required B Compute the amounts in this table for each…
vork Tax a. b. C. Gross Pay through August 31 $ 6,800 2,400 131,800 FUTA SUTA b) Tax BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. FICA-Social Security FICA-Medicare Gross Pay for September $ 700 FICA-Social Security 2,500 8,400 Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (c). Note: Round your answers to 2 decimal places. September Earnings Subject to Tax September Earnings Subject to Tax Saved Tax Rate Tax Rate Help Tax Amount Save & Exit Tax Amount Check my wo
H9.C2 Paloma Company has four employees. FICA Social Security taxes are 6.2% of the first $137,700 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, for the first $7,000 paid to each employee, the company's FUTA taxes are 0,6% and SUTA taxes are 5.4%. The company Is preparing its payroll calculations for the week ended August 25. Payroll records show the following Information for the company's four employees. Name Dali Trey Kiesha Chee Gross Pay through August 18 Dali: $ 136,600 Trey: 136,800 Kiesha: 6,900 Chee: 1,250 gross Pav Dali: $ 2,000 Trey: 900 Kiesha: 450 Chee: 400 Current Week Income Tax Withholding Dali: $284 Trey: 145 Kiesha: 39 Chee: 30 In addition to gross pay, the company must pay two-thirds of the $60 per employee weekly health insurance; each employee pays the remalning one-third. The company also contributes an extra 8% of each employee's gross pay (at no cost to employees) to a pension fund. Required: places.) Compute the following for the…
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. b. C. Gross Pay through August 31 $ 6,300 2,600 133,200 No Assuming situation (a), prepare the employer's September 30 journal entry to record salary expense and its related payroll liabilities for this employee. The employee's federal income taxes withheld by the employer are $90 for this pay period. Taxes to be Withheld From Gross Pay 1 Complete this question by entering your answers in the tabs below. General Journal Gross Pay for September $ 1,800 2,700 9,800 Assuming situation (a), prepare the employer's September 30 journal entry to record salary expense and its related payroll liabilities for this employee. The employee's federal income taxes withheld by the employer are $90 for this pay period. Note: Round your answers to 2…
Problem 10-55 (LO 10-4) CFG Company has the following employees: Edwardo Melanie Navach Wages Paid $ 12,000 6,000 22,000 CFG receives the maximum credit for state unemployment taxes. Required: What is the FUTA tax that CFG Company would owe for the year? FUTA tax for the year
AP#6_4 Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,300 each week. Additional tax information includes: FICA tax—OASDI 6.2% on first $137,700 FICA tax—HI 1.45% on total pay Federal income tax $195.00 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 Additional payroll deductions include: 401(k) plan 3% per pay Child support garnishment $105 per pay Health insurance premium $90 per pay Record the payroll entry and payroll tax entry for the pay of the week ended June 7 (his year-to-date pay is $27,300). If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent
PROBLEMS employee of Plum Hollow Country Chib, carned $1,200 during the first 27. Using the information below, determine the amount of the payroll tax expense for B. Harper Company. In your answer list the amounts for FICA (OASDI and Medicare), SUTA, FUTA and the total. Taxable Earnings Employee K. Addington $500 K. Wilcox 450 T. Sharma 350 Assume: FICA tax rates are: OASDI 6.2% on a limit of $102,000 and Medicare 1.45% State Unemployment tax rate is 5.0% on the first $7,000 Federal Unemployment tax rate is 0.8% on the first $7,000 ANSWER: FICA-Social Security FICA-Medicare SUTA FUTA Total
os 9-6 (Algo) Computing net pay LO P2 At the end of the first pay period of the year, Sofia earned $4,500 of salary. Withholdings from Sofia's salary include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $510 of federal income taxes, $170 of medical insurance deductions, and $20 of life insurance deductions. Compute Sofia's net pay for this first pay period. Note: Round your intermediate and final answers to 2 decimal places. Gross pay FICA Social Security FICA Medicare Federal income taxes Medical insurance deduction Life insurance deduction Total deductions Net pay 0.00
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. b. C. Gross Pay through August 31 $ 6,700 2,300 131,700 Exercise 9-8 (Algo) Payroll-related journal entries LO P2 Assuming situation (a), prepare the employer's September 30 journal entry to record salary expense and its related payroll liabilities this employee. The employee's federal income taxes withheld by the employer are $90 for this pay period. Complete this question by entering your answers in the tabs below. Taxes to be Withheld From Gross Pay Gross Pay for September $ 400 2,400 8,300 General Journal The employee's federal income taxes withheld by the employer are $90 for this pay period. Assuming situation (a), compute the taxes to be withheld from gross pay for this employee. (Round your answers to 2 decimal places.)…
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. نفة C. Gross Pay through Gross Pay for August 31 $ 5,200 2,700 132,100 September $ 2,400 2,800 8,700 Exercise 9-7 (Algo) Computing payroll taxes LO P2, P3 Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (c). Note: Round your answers to 2 decimal places. a) ✓ Answer is complete but not entirely correct. September Tax Earnings Subject Tax Rate Tax Amount to Tax FICA-Social $ 2,400.00 6.20% $ 148.80 Security FICA-Medicare 2,400.00✓ 1.45% 34.80 FUTA 1,800.00 0.60% 10.80 SUTA 1,800.00 5.40% 97.20 b) September Tax Earnings Subject Tax Rate Tax Amount to Tax FICA-Social $ 2,800.00 6.20% $ 173.60 Security FICA-Medicare 2,800.00…