Payroll Review ProblemCalculate payroll for Uno company’s one employee for the first week of March. Their only employee worked 50 hours and makes $12/hour. The employee has not exceeded any of the wage or tax limits. Use the tax rates as follows:TAXRATELIMITSFICA – Soc Sec6.20%$118,500FICA – Medicare1.45%NoneFed Inc Tax8.00%NoneFUTA0.60%$7,000SUTA5.40%$12,000 Required:Calculate gross pay, deductions, and net pay.Prepare the journal entry to record wages expense and its related payroll liabilities for the employee’s payroll.Prepare the journal entry to record the payroll tax expense and related liabilities for Uno Company’s payroll.

Step 1 Payroll is the total of all compensation or remuneration given by a business entity to its…

Answered: Calculate gross pay, deductions, and…

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 49BE: Payroll Taxes Sids Grocery Store has 100 employees who earn a wage of $18.75 per hour. Each of Sids...

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Payroll Review Problem

Calculate payroll for Uno company’s one employee for the first week of March. Their only employee worked 50 hours and makes $12/hour. The employee has not exceeded any of the wage or tax limits. Use the tax rates as follows:

TAX	RATE	LIMITS
FICA – Soc Sec	6.20%	$118,500
FICA – Medicare	1.45%	None
Fed Inc Tax	8.00%	None
FUTA	0.60%	$7,000
SUTA	5.40%	$12,000

Required:

Calculate gross pay, deductions, and net pay.
Prepare the journal entry to record wages expense and its related payroll liabilities for the employee’s payroll.
Prepare the journal entry to record the payroll tax expense and related liabilities for Uno Company’s payroll.

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