McLaughlin Manufacturing has the following data available for its March 31 payroll:*All subject to Social Security and Medicare matching and withholding at 6.2% and 1.45%, respectively.Federal unemployment taxes of 0.50% and state unemployment taxes of 0.80% are payable on the first $1,000,000.1Wages earnedFederal income taxes withheld234General Journal Instructions5Required:1. Compute the taxes payable and wages that will be paid to employees. Then prepare the journal entries to record the wages earned and thepayroll taxes1b. Prepare the journal entries for the transactions on March 31.2. Conceptual Connection: McLaughlin Manufacturing would like to hire a new employee at a salary of $60,000. Assuming Social Security andMedicare taxes are as described earlier in the problem (with unemployment taxes paid on the first $7,000) and fringe benefits (e.g., healthinsurance, retirement, etc.) are 28% of gross pay, what will be the total cost of this employee for McLaughlin?Social SecurityMedicare1a. Compute the taxes payable and wages that will be paid to employees.State unemploymentFederal unemploymentNet pay$1,750,000*252,840All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.DATEMar. 31Total CostACCOUNT$3,720 X$870 X$35$56 X$16,800 XGENERAL JOURNAL$21,481 XPOST. REF.DEBIT2. Conceptual Connection: McLaughlin Manufacturing would like to hire a new employee at asalary of $60,000. Assuming Social Security and Medicare taxes are as described earlier inthe problem (with unemployment taxes paid on the first $7,000) and fringe benefits (e.g.,health insurance, retirement, etc.) are 28% of gross pay, what will be the total cost of thisemployee for McLaughlin?CREDIT

Payroll deductions are the amounts that are deducted or withheld from the paycheck of the employees…

McLaughlin Manufacturing has the following data available for its March 31 payroll: Wages earned Federal income taxes withheld $1,750,000* 252,840 *All subject to Social Security and Medicare matching and withholding at 6.2% and 1.45%, respectively. Federal unemployment taxes of 0.50% and state unemployment taxes of 0.80% are payable on the first $1,000,000. Required: 1. Compute the taxes payable and wages that will be paid to employees. Then prepare the journal entries to record the wages earned and the payroll taxes. 2. Conceptual Connection: McLaughlin Manufacturing would like to hire a new employee at a salary of $60,000. Assuming Social Security and Medicare taxes are as described earlier in the problem (with unemployment taxes paid on the first $7,000) and fringe benefits (e.g., health

McLaughlin Manufacturing has the following data available for its March 31 payroll: Wages earned Federal income taxes withheld $1,750,000* 252,840 *All subject to Social Security and Medicare matching and withholding at 6.2% and 1.45%, respectively. Federal unemployment taxes of 0.50% and state unemployment taxes of 0.80% are payable on the first $1,000,000. Required: 1. Compute the taxes payable and wages that will be paid to employees. Then prepare the journal entries to record the wages earned and the payroll taxes. 2. Conceptual Connection: McLaughlin Manufacturing would like to hire a new employee at a salary of $60,000. Assuming Social Security and Medicare taxes are as described earlier in the problem (with unemployment taxes paid on the first $7,000) and fringe benefits (e.g., health

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Peyton Company's payroll for the year is$737,910. Of this amount, 472,120 is for wages paid in excess of of 7,000 to each individual employee. The SUTA rate in Peyton Company's state is 2.9% on the first 7,000 of each employees earnings.. Computte a. Net FUTA tax b. Net SUTA tax c. Total Unemployment taxes
Payroll Tax Entries According to a summary of the payroll of Guthrie Co., $587,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $19,000 was subject to state and federal unemployment taxes. Question Content Area a. Compute the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.6%.$fill in the blank 04825efc801a047_1 Question Content Area b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.
According to a summary of the payroll of Sinclair Company, $505,000 was subject to the 6.0% social security tax and $545,000 was subject to the 1.5% Medicare tax. Also, $10,000 was subject to state and federal unemployment taxes. Question Content Area Required: a. Compute the employer's payroll taxes using the following rates: State unemployment, 4.2%; Federal unemployment, 0.8%.$ fill in the blank bdfee804ffc2f82_1 Question Content Area b. Journalize the entry for the employer's payroll tax expense. If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select -
According to a payroll register summary of Swifty Company, the amount of employees' gross pay in December was $852,000, of which $88,000 was not subject to Social Security taxes of 6.2% and $744,000 was not subject to state and federal unemployment taxes. (a) Determine the employer's payroll tax expense for the month, using the following rates: FICA 7.65%, state unemployment 5.40%, and federal unemployment 0.60%. (Round answer to 0 decimal places, e.g. 125.) Payroll tax expense $ eTextbook and Media List of Accounts
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The following information pertains to a weekly payroll of Texera Tile Company: a. The total wages earned by employees are $17,500.b. The state unemployment insurance contribution rate is 3.5%.c. The entire amount of wages is taxable under FICA, FUTA, and SUTA.d. The amount withheld from the employees' wages for federal income taxes is $1,950; for state income taxes, $372.60; and for group insurance, $192.00. ournalize the payment of wages, and record the payroll taxes for this payroll. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. Account Debit Credit Payment of wages Payroll taxes
Required: Below is a payroll sheet for Riverbed Imports for the month of September 2025. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $142,800. In addition, 1.45% is charged both employer and employee for an employee's wages in excess of $142,800 per employee. Name B.D. Williams D. Raye K. Baker F. Lopez A. Daniels B. Kingston Earnings to Aug.31 $6,900 6,700 7,600 14,800 130,000 135,000 September Income Tax Earnings Withholding $900 800 1,100 1,800 13,900 16,500 FICA Unemployment Tax State Federal 1. Complete the payroll sheet in Excel and make the necessary entry to record the payment of the payroll. 2. Make the entry to record the payroll tax expenses of Riverbed Imports. 3. Make the entry to record the payment of the payroll liabilities created in parts a and b.…
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