Selected information from the payroll register of Barbara's Stables for the week ended September 28, 20--, is as follows: Social Security tax is 6.2% on the first $128,400 of earnings for each employee. Medicare tax is 1.45% of gross earnings, FUTA tax is 0.8%, and SUTA tax is 5.4% each on the first $7,000 of earnings. Cumulative PayCurrentTaxable EarningsEmployee NameBefore CurrentEarningsGrossPayUnemploymentCompensationSocialSecurityCarlosi, Peggy$ 84,240 $2,350 Sanchez, Carmela81,900 2,100 Delaney, Roger109,800 3,320 Weitz, Alana6,300 1,100 Dunhill, Craig6,800 1,000 Bella, Stephen42,330 1,850 1. Calculate the amount of taxable earnings for unemployment and Social Security taxes.Cumulative PayTaxable EarningsCurrentBefore CurrentGrossUnemploymentSocialEarningsEmployee NamePayCompensationSecurityCarlosi, Peggy$84,240$2,350Sanchez, Carmela81,9002,100Delaney, Roger109,8003,320Weitz, Alana6,3001,100Dunhill, Craig6,8001,000Bella, Stephen42,3301,8502. Prepare the journal entry to record the employer's payroll taxes as of September 28, 20--. If required, round your answers to the nearestcent. If an amount box does not require an entry, leave it blank.Page: 1POST.DATEDESCRIPTIONDEBIT CREDITREF.1 Sep. 282234455

Social Security tax = 6.2% on the first $128,400 of earnings Medicare tax = 1.45% of gross earnings…

Answered: Selected information from the payroll…

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 3QY

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Selected information from the payroll register of Barbara's Stables for the week ended September 28, 20--, is as follows: Social Security tax is 6.2% on the first $128,400 of earnings for each employee. Medicare tax is 1.45% of gross earnings, FUTA tax is 0.8%, and SUTA tax is 5.4% each on the first $7,000 of earnings.

	Cumulative Pay	Current	Taxable Earnings
Employee Name	Before Current Earnings	Gross Pay	Unemployment Compensation	Social Security
Carlosi, Peggy	$ 84,240	$2,350
Sanchez, Carmela	81,900	2,100
Delaney, Roger	109,800	3,320
Weitz, Alana	6,300	1,100
Dunhill, Craig	6,800	1,000
Bella, Stephen	42,330	1,850

1. Calculate the amount of taxable earnings for unemployment and Social Security taxes.
Cumulative Pay
Taxable Earnings
Current
Before Current
Gross
Unemployment
Social
Earnings
Employee Name
Pay
Compensation
Security
Carlosi, Peggy
$84,240
$2,350
Sanchez, Carmela
81,900
2,100
Delaney, Roger
109,800
3,320
Weitz, Alana
6,300
1,100
Dunhill, Craig
6,800
1,000
Bella, Stephen
42,330
1,850
2. Prepare the journal entry to record the employer's payroll taxes as of September 28, 20--. If required, round your answers to the nearest
cent. If an amount box does not require an entry, leave it blank.
Page: 1
POST.
DATE
DESCRIPTION
DEBIT CREDIT
REF.
1 Sep. 28
2
2
3
4
4
5
5

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R. L. Ybarra employs John Ince at a salary of $53,000 a year. Ybarra is subject to employer Social Security taxes at a rate of 6.2% and Medicare taxes at a rate of 1.45% on John's salary. In addition, Ybarra must pay SUTA tax at a rate of 5.4% and FUTA tax at a rate of 0.8% on the first $7,000 of Ince's salary.

Compute the total cost to Ybarra of employing Ince for the year. Round your answer to the nearest cent.

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