Problem Information Use the following tax rates, celing and maximum taxes: Employee and Employer OASDI: 6.20% $137,700 $8,537.40 Employen and Employer HI: 1.45% No limit No maximum Self-employed OASDI: 12.4% $137,700 $17,074.80 Self-employed HI: 2.9% No limit No maximum *Employee HI: Plus an additional 0.9% on wages aver $200,000. Also applicable to self-employed. Rounding Rules: Unless instructed otherwise compute hourly rate and overtime rates as follows 1. Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-haif to determine the overtime rate). 2. If the third decimal place is 5 or more, round to the next higher cent. 3. If the third decimal place is less than 5, drop the third decimal place. Also, use the minimum hourty wage of $7.25 in solving these problems and all that follow. Jax Company's (a monthly depositor) tax lability (amount withheld from employees' wages for federal income tax and FICA tax plus the company's pertion of the FICA tax) for July was $1,210. No deposit was made by the compeny until August 24, 20 (9 days late). Determine the following Noter Round your answers to the nearest cent and assume 365 days in a year, a. The date by which the deposit should have been made b. The penaity for failure to make timely deposit C. The penalty for failure to fully pay tax when due d. The interest on taxes due and unpaid (assume a 5% interest rate) 22
Problem Information Use the following tax rates, celing and maximum taxes: Employee and Employer OASDI: 6.20% $137,700 $8,537.40 Employen and Employer HI: 1.45% No limit No maximum Self-employed OASDI: 12.4% $137,700 $17,074.80 Self-employed HI: 2.9% No limit No maximum *Employee HI: Plus an additional 0.9% on wages aver $200,000. Also applicable to self-employed. Rounding Rules: Unless instructed otherwise compute hourly rate and overtime rates as follows 1. Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-haif to determine the overtime rate). 2. If the third decimal place is 5 or more, round to the next higher cent. 3. If the third decimal place is less than 5, drop the third decimal place. Also, use the minimum hourty wage of $7.25 in solving these problems and all that follow. Jax Company's (a monthly depositor) tax lability (amount withheld from employees' wages for federal income tax and FICA tax plus the company's pertion of the FICA tax) for July was $1,210. No deposit was made by the compeny until August 24, 20 (9 days late). Determine the following Noter Round your answers to the nearest cent and assume 365 days in a year, a. The date by which the deposit should have been made b. The penaity for failure to make timely deposit C. The penalty for failure to fully pay tax when due d. The interest on taxes due and unpaid (assume a 5% interest rate) 22
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter13: Accounting For Payroll And Payroll Taxes
Section13.3: Reporting Withholding And Payroll Taxes
Problem 1WT
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Transcribed Image Text:Problem Information
Use the following tax rates, celling and maximum taxes:
Employee and Employer OASDI:
6.20%
$137,700
$8,537.40
Employee and Employer HI:
1.45%
No limit
No maximum
Self-employed OASDI:
12.4%
$137,700
$17,074.80
Self-employed HI:
2.9%
No limit
No maximum
"Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed.
Rounding Rules: Unless instructed otherwise compute hourly rate and overtime rates as follows:
1. Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before
multiplying by one and one-haif to determine the overtime rate).
2. If the third decimal place is 5 or more, round to the next higher cent.
3. If the third decimal place is less than 5, drop the third decimal place.
Also, use the minimum hourty wage of $7.25 in solving these problems and all that follow.
Jax Company's (a monthly depositor) tax lability (amount withheld from employees' wages for federal income tax and FICA tax plus the company's portion of
the FICA tax) for July was $1,210. No deposit was made by the company until August 24, 20 (9 days late). Determine the following
Note: Round your answers to the nearest cent and assume 365 days in a year.
a. The date by which the deposit should have been made
b. The penalty for failure to make timely deposit
C. The penalty for failure to fully pay tax when due
d. The interest on taxes due and unpaid (assume a 5% interest rate)
22
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