Calculation of Taxable Earnings and Employer Payroll Taxesand Preparation of Journal EntrySelected information from the payroll register of Joanie'sBoutique for the week ended September 14, 20--, is asfollows: Social Security tax is 6.2% on the first $128,400 ofearnings for each employee. Medicare tax is 1.45% of grossearnings. FUTA tax is 0.6% and SUTA tax is 5.4% on thefirst $7,000 of earnings.Taxable EarningsCumulative PayBefore CurrentCurrent UnemploymentSocialEmployee NameEarningsGross Pay CompensationSecurityJordahl, Stephanie$6,480$1,210Keesling, Emily6,1101,100Palmer, Stefan55,3102,390Soltis, Robin54,4102,270Stout, Hannah29,1302,010Xia, Xu127,4003,5201. Calculate the amount of taxable earnings forunemployment, Social Security, and Medicare taxes.Taxable EarningsCurrentUnemploymentSocialEmployee NameEarningsCompensationSecurityJordahl, Stephanie $Keesling, EmilyPalmer, StefanSoltis, RobinStout, HannahXia, XuTotal$Social Security taxMedicare taxFUTA taxSUTA taxTotal employer payroll taxes2. Prepare the journal entry to record the employer'spayroll taxes as of September 14, 20--.Page:DOC. POST.DATEACCOUNT TITIEDEBITCREDIT September 14, 20--, is as follows: Social Security tax is 6.2% on the first $128,400 ofearnings for each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is 0.6%and SUTA tax is 5.4% on the first $7,000 of earnings.Taxable EarningsCumulative PayBefore CurrentCurrent UnemploymentSocialEmployee NameEarningsGross Pay Compensation SecurityJordahl, Stephanie$6,480$1,210Keesling, Emily6,1101,100Palmer, Stefan55,3102,390Soltis, Robin54,4102,270Stout, Hannah29,1302,010Xia, Xu127,4003,5201. Calculate the amount of taxable earnings for unemployment, Social Security, andMedicare taxes.Taxable EarningsCurrent UnemploymentSocialEmployee Name Earnings Compensation SecurityJordahl, Stephanie $Keesling, EmilyPalmer, StefanSoltis, RobinStout, HannahXia, XuTotalSocial Security tax$4Medicare taxFUTA taxSUTA taxTotal employer payroll taxes $2. Prepare the journal entry to record the employer's payroll taxes as of September 14,20--.Page:DOC. POST.NO. REF.DATEACCOUNT TITLEDEBIT CREDIT20--1Sept. 14122.344

Payroll It is important for the business to maintain the payroll system which is important for both…

Calculation of Taxable Earnings and Employer Payroll Taxes and Preparation of Journal Entry Selected information from the payroll register of Joanie's Boutique for the week ended September 14, 20--, is as follows: Social Security tax is 6.2% on the first $128,400 of earnings for each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings. Taxable Earnings

Calculation of Taxable Earnings and Employer Payroll Taxes and Preparation of Journal Entry Selected information from the payroll register of Joanie's Boutique for the week ended September 14, 20--, is as follows: Social Security tax is 6.2% on the first $128,400 of earnings for each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings. Taxable Earnings

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter9: Payroll Accounting: Employer Taxes And Reports

Section: Chapter Questions

Problem 3SEA: CALCULATION OF TAXABLE EARNINGS AND EMPLOYER PAYROLL TAXES AND PREPARATION OF JOURNAL ENTRY Selected...

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CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL TAXES Portions of the payroll register for Barneys Bagels for the week ended July 15 are shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.6%, both of which are levied on the first 7,000 of earnings. The Social Security tax rate is 6.2% on the first 118,500 of earnings. The Medicare rate is 1.45% on gross earnings. Calculate the employers payroll taxes expense and prepare the journal entry to record the employers payroll taxes expense for the week ended July 15 of the current year.
CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL TAXES Earnings for several employees for the week ended March 12, 20--, are as follows: Calculate the employers payroll taxes expense and prepare the journal entry as of March 12, 20--, assuming that FUTA tax is 0.6%, SUTA tax is 5.4%, Social Security tax is 6.2%, and Medicare tax is 1.45%.
CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL TAXES Portions of the payroll register for Kathy s Cupcakes for the week ended June 21 are shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.6%, both on the first 7,000 of earnings. The Social Security tax rate is 6.2% on the first 118,500 of earnings. The Medicare rate is 1.45% on gross earnings. Calculate the employers payroll taxes expense and prepare the journal entry to record the employers payroll taxes expense for the week ended June 21 of the current year.
JOURNAL ENTRIES FOR PAYMENT OF EMPLOYER PAYROLL TAXES Francis Baker owns a business called Baker Construction Co. She does her banking at the American National Bank in Seattle, Washington. The amounts in her general ledger for payroll taxes and employees withholding of Social Security, Medicare, and federal income tax payable as of July 15 of the current year are as follows: Journalize the quarterly payment of the employee federal income taxes and Social Security and Medicare taxes on July 15, 20--, and the payments of the FUTA and state unemployment taxes on July 31, 20--.
The totals line from Nix Companys payroll register for the week ended March 31, 20--, is as follows: Payroll taxes are imposed as follows: Social Security tax, 6.2%; Medicare tax, 1.45%; FUTA tax, 0.6%; and SUTA tax, 5.4%. REQUIRED 1. a. Prepare the journal entry for payment of this payroll on March 31, 20--. b. Prepare the journal entry for the employers payroll taxes for the period ended March 31, 20--. 2. Nix Company had the following balances in its general ledger before the entries for requirement ( 1 ) were made: a. Prepare the journal entry for payment of the liabilities for federal income taxes and Social Security and Medicare taxes on April 15, 20--. b. Prepare the journal entry for payment of the liability for FUTA tax on April 30, 20--. c. Prepare the journal entry for payment of the liability for SUTA tax on April 30, 20--.
The following information about the payroll for the week ended December 30 was obtained from the records of Qualitech Co.: Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.8% Instructions 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries: a. December 30, to record the payroll. b. December 30, to record the employers payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, 35,000 is subject to unemployment compensation taxes. 2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries: a. December 30, to record the payroll. b. January 5, to record the employers payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all 675,000 in salaries is subject to unemployment compensation taxes.