On March 31 AAA Company paid cash to Amal Green at a rate of $140 per day for eight days' work. Amal is not married. Her wages are deducted for FICA Social Security taxes, FICA Medicare taxes, and federal income taxes. Her federal income taxes for this pay period total $112. FICA Social Security taxes are 6.2% of the first $128,400 paid to each employee and FICA Medicare taxes are 1.45% of gross pay. Required: 1. Calculate her net pay for the eight days' work paid on March 31. (Round your answer to 2 decimal places. Do not round intermediate calculations.) 2. Record the journal entry for March 31 to reflect the payroll payment to Amal. (Round your answers to 2 decimal places. Do not round intermediate calculations.) 3. Record the journal entry to reflect the (employer) payroll tax expenses for the March 31 payroll payment. Assume Amal has not met earnings limits for FUTA and SUTA (the FUTA rate is 0.6% and the SUTA rate is 5.4% for the company. (Round your answers to 2 decimal places. Do not round intermediate calculations.)
On March 31 AAA Company paid cash to Amal Green at a rate of $140 per day for eight days' work. Amal is not married. Her wages are deducted for FICA Social Security taxes, FICA Medicare taxes, and federal income taxes. Her federal income taxes for this pay period total $112. FICA Social Security taxes are 6.2% of the first $128,400 paid to each employee and FICA Medicare taxes are 1.45% of gross pay.
Required:
1. Calculate her net pay for the eight days' work paid on March 31. (Round your answer to 2 decimal places. Do not round intermediate calculations.)
2. Record the
3. Record the journal entry to reflect the (employer) payroll tax expenses for the March 31 payroll payment. Assume Amal has not met earnings limits for FUTA and SUTA (the FUTA rate is 0.6% and the SUTA rate is 5.4% for the company. (Round your answers to 2 decimal places. Do not round intermediate calculations.)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
