Answered: The information on earnings and…

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 4E

See similar textbooks

Related questions

Question

The information on earnings and deductions for the pay period ended December 14 from King Company's payroll records is as follows:

		Beginning
		Cumulative
Name	Gross Pay	Earnings
Burgess, J. L.	$410	$6,750
Clayton, M. E.	785	40,200
Drugden, T. F.	860	38,500
Lui, L. W.	990	39,700
Sparks, C. R.	4,094	115,700
Stevers, D. H.	850	6,810

For each employee, the Social Security tax is 6.2 percent of the first $118,500 and the employer's Social Security tax is 6.2 percent on the same earnings limit. The Medicare tax is 1.45 percent on all earnings. The federal unemployment tax rate is 0.6 percent of the first $7,000 of earnings of each employee. The state unemployment tax rate is 5.4 percent of the same base.

Required:

Determine the total taxable earnings for unemployment, Social Security, and Medicare. If an amount is zero, enter "0".

and Prepare a general journal entry to record the employer's payroll taxes. If an amount box does not require an entry, leave it blank. If required, round your intermediate calculations and final answers to the nearest cent and use the rounded answers in subsequent computations.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions