Random company pays their employees weekly. The following information is for the week ended January 7, 2021. Anything over 40 hours is paid as overtime. FICA SS rate is 6.2%. FICA MC rate is 1.45%. FUTA rate is 0.8%. SUTA rate is 5.6%. Calculate federal withholding based on 8% of gross wages and Arkansas withholding based 6% of gross wages. Employee 1 Boss Smith Paid $1,245 Gross Pay per week. Employee 2 Secretary Jones Paid $9.50 an hour. Worked 45 hours. Employee 3 Joe Worker Paid $12.00 an hour. Worked 48 hours. Required: 1. Calculate payroll record (gross, taxes withheld, net payroll) for each employee. 2. Prepare the journal entry to record employee payroll and the withholding for the week. 3. Prepare the journal entry to record employer payroll tax for the week.
Random company pays their employees weekly. The following information is for the week ended January 7, 2021. Anything over 40 hours is paid as overtime. FICA SS rate is 6.2%. FICA MC rate is 1.45%. FUTA rate is 0.8%. SUTA rate is 5.6%. Calculate federal withholding based on 8% of gross wages and Arkansas withholding based 6% of gross wages. Employee 1 Boss Smith Paid $1,245 Gross Pay per week. Employee 2 Secretary Jones Paid $9.50 an hour. Worked 45 hours. Employee 3 Joe Worker Paid $12.00 an hour. Worked 48 hours. Required: 1. Calculate payroll record (gross, taxes withheld, net payroll) for each employee. 2. Prepare the journal entry to record employee payroll and the withholding for the week. 3. Prepare the journal entry to record employer payroll tax for the week.
College Accounting (Book Only): A Career Approach
12th Edition
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cathy J. Scott
Chapter7: Employee Earnings And Deductions
Section: Chapter Questions
Problem 3PA
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Transcribed Image Text:Random company pays their employees weekly. The following information is for the week ended January 7, 2021. Anything over 40 hours is paid as overtime. FICA-SS rate is 6.2%. FICA-MC rate is 1.45%. FUTA rate is 0.8%. SUTA rate is 5.6%.
Calculate federal withholding based on 8% of gross wages and Arkansas withholding based 6% of gross wages.
Employee 1
Boss Smith
Paid $1,245 Gross Pay per week.
Employee 2
Secretary Jones
Paid $9.50 an hour. Worked 45 hours.
Employee 3
Joe Worker
Paid $12.00 an hour. Worked 48 hours.
Required:
1. Calculate payroll record (gross, taxes withheld, net payroll) for each employee.
2. Prepare the journal entry to record employee payroll and the withholding for the week.
3. Prepare the journal entry to record employer payroll tax for the week.
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