For all payroll calculations, use the following tax rates and round amounts to the nearest centEmployee: OASDI: 6.2% on first $118,500 earned; Medicare 1.45% up to $200,000, 2.35% on earnings above $200,000.Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned.Computing and journalizing an employee’s total payLucy Rose works at College of Fort Worth and is paid $12 per hour for a 40-hour workweek and time-and-a-half for hours above 40.RequirementsCompute Rose’s gross pay for working 60 hours during the first week of February.Rose is single, and her income tax withholding is 15% of total pay. Rose’s only payroll deductions are payroll taxes. Compute Rose’s net (take-home) pay for the week. Assume Rose’s earnings to date are less than the OASDI limit.Journalize the accrual of wages expense and the payment related to the employment of Lucy Rose.

Question
Asked Jan 16, 2020
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For all payroll calculations, use the following tax rates and round amounts to the nearest cent

Employee: OASDI: 6.2% on first $118,500 earned; Medicare 1.45% up to $200,000, 2.35% on earnings above $200,000.

Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned.

Computing and journalizing an employee’s total pay

Lucy Rose works at College of Fort Worth and is paid $12 per hour for a 40-hour workweek and time-and-a-half for hours above 40.

Requirements

  1. Compute Rose’s gross pay for working 60 hours during the first week of February.
  2. Rose is single, and her income tax withholding is 15% of total pay. Rose’s only payroll deductions are payroll taxes. Compute Rose’s net (take-home) pay for the week. Assume Rose’s earnings to date are less than the OASDI limit.
  3. Journalize the accrual of wages expense and the payment related to the employment of Lucy Rose.
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Expert Answer

Step 1
  1. Compute gross pay for working of 60 hours during the first week of February as shown below:
Accounting homework question answer, step 1, image 1
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Step 2

2. Compute R’s net pay for the wee...

Accounting homework question answer, step 2, image 1
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