Nielson Corporation has three employees. Each employee is paid overtime at time and one-half after the first 40 hours worked for the week. The current social security and medicare taxes are 6.2% and 1.45% respectively. Social security tax is capped on the first $140,000 of annual wages. The current unemployment tax rates are 3% for state and 1% for federal on the first $8,000 of annual wages. Below is the payroll information for the first week of the new year (therefore, the annual wage caps will not apply). Employee Hourly Rate Hours Worked Federal W/H Rate Roth 401k Deduction Health Insurance United Way Susan W. 27 45 20% 120 150 5 George B. 25.25 50 20% 100 200 5 Maria M. 23 48 15% 75 125 5 a. Prepare a payroll register for the week's payroll (use the form provided to the right). b. Record the journal entry for the payroll for the week. c. Record the employer payroll tax expense for the week. a. Payroll Register for Week 1. Week ended January 7, 2022 (Round to the nearest cent) Employee Regular Wages Overtime Wages Gross Wages Federal W/H Tax Social Security Tax Medicare Tax Roth 401k Health Insurance United Way Total Deductions Net Pay Susan W. $40.50 $1,282.50 $256.50 $120.00 $150.00 $5.00 $629.21 $652.89 George B. $37.88 $1,388.75 $277.75 $100.00 $200.00 $5.00 $688.99 $699.76 Maria M. $34.50 $1,196.00 $239.20 $75.00 $125.00 $5.00 $535.69 $660.31 Total $3,867.25 $773.45 $295.00 $475.00 $15.00 $1,854.29 $2,012.96 b. Record the payroll journal entry for week ended January 7. General Journal Date Account Debit Credit 2022 7-Jan Wages Expense 3,867.25 773.45 295.00 475.00 15.00 239.77 56.08 2,012.96 c. Record the employer payroll tax expense for the week. General Journal Date Account Debit Credit 2022 7-Jan 450.53 239.77 56.08 38.67 116.02
Nielson Corporation has three employees. Each employee is paid overtime at time and one-half after the first 40 hours worked for the week. The current social security and medicare taxes are 6.2% and 1.45% respectively. Social security tax is capped on the first $140,000 of annual wages. The current unemployment tax rates are 3% for state and 1% for federal on the first $8,000 of annual wages. Below is the payroll information for the first week of the new year (therefore, the annual wage caps will not apply). Employee Hourly Rate Hours Worked Federal W/H Rate Roth 401k Deduction Health Insurance United Way Susan W. 27 45 20% 120 150 5 George B. 25.25 50 20% 100 200 5 Maria M. 23 48 15% 75 125 5 a. Prepare a payroll register for the week's payroll (use the form provided to the right). b. Record the journal entry for the payroll for the week. c. Record the employer payroll tax expense for the week. a. Payroll Register for Week 1. Week ended January 7, 2022 (Round to the nearest cent) Employee Regular Wages Overtime Wages Gross Wages Federal W/H Tax Social Security Tax Medicare Tax Roth 401k Health Insurance United Way Total Deductions Net Pay Susan W. $40.50 $1,282.50 $256.50 $120.00 $150.00 $5.00 $629.21 $652.89 George B. $37.88 $1,388.75 $277.75 $100.00 $200.00 $5.00 $688.99 $699.76 Maria M. $34.50 $1,196.00 $239.20 $75.00 $125.00 $5.00 $535.69 $660.31 Total $3,867.25 $773.45 $295.00 $475.00 $15.00 $1,854.29 $2,012.96 b. Record the payroll journal entry for week ended January 7. General Journal Date Account Debit Credit 2022 7-Jan Wages Expense 3,867.25 773.45 295.00 475.00 15.00 239.77 56.08 2,012.96 c. Record the employer payroll tax expense for the week. General Journal Date Account Debit Credit 2022 7-Jan 450.53 239.77 56.08 38.67 116.02
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 4E
Related questions
Question
| Nielson Corporation has three employees. Each employee is paid overtime at time and one-half | ||||||||||
| after the first 40 hours worked for the week. The current social security and medicare taxes are 6.2% and 1.45% | ||||||||||
| respectively. Social security tax is capped on the first $140,000 of annual wages. The current |
||||||||||
| tax rates are 3% for state and 1% for federal on the first $8,000 of annual wages. | ||||||||||
| Below is the payroll information for the first week of the new year (therefore, the annual wage caps will not apply). | ||||||||||
| Employee | Hourly Rate | Hours Worked | Federal W/H Rate | Roth 401k Deduction | Health Insurance | United Way | ||||
| Susan W. | 27 | 45 | 20% | 120 | 150 | 5 | ||||
| George B. | 25.25 | 50 | 20% | 100 | 200 | 5 | ||||
| Maria M. | 23 | 48 | 15% | 75 | 125 | 5 | ||||
| a. Prepare a payroll register for the week's payroll (use the form provided to the right). | ||||||||||
| b. Record the |
||||||||||
| c. Record the employer payroll tax expense for the week. |
| a. Payroll Register for Week 1. Week ended January 7, 2022 (Round to the nearest cent) | |||||||||||||
| Employee | Regular Wages | Overtime Wages | Gross Wages | Federal W/H Tax | Social Security Tax | Medicare Tax | Roth 401k | Health Insurance | United Way | Total Deductions | Net Pay | ||
| Susan W. | $40.50 | $1,282.50 | $256.50 | $120.00 | $150.00 | $5.00 | $629.21 | $652.89 | |||||
| George B. | $37.88 | $1,388.75 | $277.75 | $100.00 | $200.00 | $5.00 | $688.99 | $699.76 | |||||
| Maria M. | $34.50 | $1,196.00 | $239.20 | $75.00 | $125.00 | $5.00 | $535.69 | $660.31 | |||||
| Total | $3,867.25 | $773.45 | $295.00 | $475.00 | $15.00 | $1,854.29 | $2,012.96 | ||||||
| b. Record the payroll journal entry for week ended January 7. | |||||||||||||
| General Journal | |||||||||||||
| Date | Account | Debit | Credit | ||||||||||
| 2022 | |||||||||||||
| 7-Jan | Wages Expense | 3,867.25 | |||||||||||
| 773.45 | |||||||||||||
| 295.00 | |||||||||||||
| 475.00 | |||||||||||||
| 15.00 | |||||||||||||
| 239.77 | |||||||||||||
| 56.08 | |||||||||||||
| 2,012.96 | |||||||||||||
| c. Record the employer payroll tax expense for the week. | |||||||||||||
| General Journal | |||||||||||||
| Date | Account | Debit | Credit | ||||||||||
| 2022 | |||||||||||||
| 7-Jan | 450.53 | ||||||||||||
| 239.77 | |||||||||||||
| 56.08 | |||||||||||||
| 38.67 | |||||||||||||
| 116.02 | |||||||||||||
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