Part I. An employee earns $22 per hour and 2 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 50 hours during the week. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was $177.10. a. Determine the gross pay for the week. b. Determine the net pay for the week.
Part I.
An employee earns $22 per hour and 2 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 50 hours during the week. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was $177.10. a. Determine the gross pay for the week. b. Determine the net pay for the week.
Part II.
Assume that the social security tax rate is 6% and the Medicare tax rate is 1.5%. In the fol-lowing summary of data for a payroll period, some amounts have been intentionally omitted:
Earnings:
- At regular rate ?
- At overtime rate $80,000
- Total earnings ?
Deductions:
- Social security tax $32,400
- Medicare tax $8,100
- Federal income tax withheld $135,000
- Medical insurance $18,900
- Union dues ?
- Total deductions $201,150
- Net amount paid $338,850
Accounts debited:
- Factory Wages $285,000
- Sales Salaries ?
- Office Salaries $120,000
a. Determine the amounts omitted in lines (1), (3), (8), and (12).
b.
c. Journalize the entry to record the payment of the payroll.
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