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Stark Company has five employees. Employees paid by the hour earn $10 per hour for the regular 40-hour workweek and $15 per hour beyond the 40 hours per week. Hourly employees are paid every two weeks, but salaried employees are paid monthly on the last biweekly payday of each month. 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. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. The company has a benefits plan that includes medical insurance, life insurance, and retirement funding for employees. Under this plan, employees must contribute 5% of their gross income as a payroll withholding, which the company matches with double the amount. Following is the partially completed payroll register for the biweekly period ending August 31, which is the last payday of August. a. Complete this payroll register by filling in all cells for the pay period ended August 31. b, c, d & e. Prepare the August 31 journal entry to: b. Record the accrued biweekly payroll and related liabilities for deductions. c. Record the employer's cash payment of the net payroll of part b. d. Record the employer's payroll taxes including the contribution to the benefits plan. e. Pay all liabilities (except for the net payroll in part ) for this biweekly period.

Stark Company has five employees. Employees paid by the hour earn $10 per hour for the regular 40-hour workweek and $15 per hour beyond the 40 hours per week. Hourly employees are paid every two weeks, but salaried employees are paid monthly on the last biweekly payday of each month. 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. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. The company has a benefits plan that includes medical insurance, life insurance, and retirement funding for employees. Under this plan, employees must contribute 5% of their gross income as a payroll withholding, which the company matches with double the amount. Following is the partially completed payroll register for the biweekly period ending August 31, which is the last payday of August. a. Complete this payroll register by filling in all cells for the pay period ended August 31. b, c, d & e. Prepare the August 31 journal entry to: b. Record the accrued biweekly payroll and related liabilities for deductions. c. Record the employer's cash payment of the net payroll of part b. d. Record the employer's payroll taxes including the contribution to the benefits plan. e. Pay all liabilities (except for the net payroll in part ) for this biweekly period.

Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter13: Accounting For Payroll And Payroll Taxes
Section13.2: Recording Employer Payroll Taxes
Problem 1OYO
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FICA Medicare FICA S.S. Employee Plan Withholding FIT Current Period Gross Pay FUTA Withholding Cumulative Pay Employee (Excludes Current Period) Employee Employee Employee Net Pay Pay Туре FICA Medicare Employer SIT Pay Hours FICA S.S. Employer Plan Expense Gross Pay SUTA Withholding Employer $ 2,000.00 $ 0.00 $ 111.60 Kathleen $ 126,600.00 Salary $ 7,000.00 300.00 80.00 25.00 Anthony 6,800.00 Salary 500.00 20.00 50.00 Regular 80 110.00 Nichole 15,100.00 Overtime 8 25.00 Regular 80 100.00 Zoey 6,500.00 Overtime 4 22.00 Regular 74 740.00 90.00 Gracie 5,000.00 Overtime 21.00 $ 2,380.00 $ 0.00 $ 111.60 $ 0.00 $ 25.00 $ 50.00 Totals $ 160,000.00 0.00 388.00 0.00 0.00 0.00 %24
Transcribed Image Text:FICA Medicare FICA S.S. Employee Plan Withholding FIT Current Period Gross Pay FUTA Withholding Cumulative Pay Employee (Excludes Current Period) Employee Employee Employee Net Pay Pay Туре FICA Medicare Employer SIT Pay Hours FICA S.S. Employer Plan Expense Gross Pay SUTA Withholding Employer $ 2,000.00 $ 0.00 $ 111.60 Kathleen $ 126,600.00 Salary $ 7,000.00 300.00 80.00 25.00 Anthony 6,800.00 Salary 500.00 20.00 50.00 Regular 80 110.00 Nichole 15,100.00 Overtime 8 25.00 Regular 80 100.00 Zoey 6,500.00 Overtime 4 22.00 Regular 74 740.00 90.00 Gracie 5,000.00 Overtime 21.00 $ 2,380.00 $ 0.00 $ 111.60 $ 0.00 $ 25.00 $ 50.00 Totals $ 160,000.00 0.00 388.00 0.00 0.00 0.00 %24
Stark Company has five employees. Employees paid by the hour earn $10 per hour for the regular 40-hour workweek and $15 per hour beyond the 40 hours per week. Hourly employees are paid every two weeks, but salaried employees are paid monthly on the last biweekly payday of each month. 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. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. The company has a benefits plan that includes medical insurance, life insurance, and retirement funding for employees. Under this plan, employees must contribute 5% of their gross income as a payroll withholding, which the company matches with double the amount. Following is the partially completed payroll register for the biweekly period ending August 31, which is the last payday of August. a. Complete this payroll register by filling in all cells for the pay period ended August 31. b, c, d & e. Prepare the August 31 journal entry to: b. Record the accrued biweekly payroll and related liabilities for deductions. c. Record the employer's cash payment of the net payroll of part b. d. Record the employer's payroll taxes including the contribution to the benefits plan. e. Pay all liabilities (except for the net payroll in part d) for this biweekly period.
Transcribed Image Text:Stark Company has five employees. Employees paid by the hour earn $10 per hour for the regular 40-hour workweek and $15 per hour beyond the 40 hours per week. Hourly employees are paid every two weeks, but salaried employees are paid monthly on the last biweekly payday of each month. 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. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. The company has a benefits plan that includes medical insurance, life insurance, and retirement funding for employees. Under this plan, employees must contribute 5% of their gross income as a payroll withholding, which the company matches with double the amount. Following is the partially completed payroll register for the biweekly period ending August 31, which is the last payday of August. a. Complete this payroll register by filling in all cells for the pay period ended August 31. b, c, d & e. Prepare the August 31 journal entry to: b. Record the accrued biweekly payroll and related liabilities for deductions. c. Record the employer's cash payment of the net payroll of part b. d. Record the employer's payroll taxes including the contribution to the benefits plan. e. Pay all liabilities (except for the net payroll in part d) for this biweekly period.
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