Explanation Medicare Tax: It is a tax imposed by the Federal Insurance Contributions Act on both employers and employees to give medical care for the employee and the employee’s spouse after the age of 65 years. The main purpose of the Medicare tax is to provide medical benefit for the employee and the employee’s spouse after the age of 65 years. Calculate the amount of Medicare tax withheld from each employee for the month of December. Employee no 1: Medicare tax - Withholding = Medicare taxable earnings × Medicare tax rate =$9,900 × 1 .45% =$143 .55 Employee no 2: Medicare tax - Withholding = Medicare taxable earnings × Medicare tax rate = $10,000 × 1

LooseLeaf for College Accounting: A Contemporary Approach

4th Edition

ISBN: 9781259995057

Author: M. David Haddock Jr. Professor, John Ellis Price, Michael Farina

Publisher: McGraw-Hill Education

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Question

Chapter 10, Problem 4E

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Calculate the amount of Medicare tax withheld from each employee for the month of December.

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Chapter 10, Problem 3E

Chapter 10, Problem 5E

Chapter 10 Solutions

LooseLeaf for College Accounting: A Contemporary Approach

Ch. 10 - Prob. 1.1SRQ Ch. 10 - Prob. 1.2SRQ Ch. 10 - Prob. 1.3SRQ Ch. 10 - Prob. 1.4SRE Ch. 10 - Prob. 1.5SRE Ch. 10 - Prob. 1.6SRA Ch. 10 - Prob. 2.1SRQ Ch. 10 - Prob. 2.2SRQ Ch. 10 - Prob. 2.3SRQ Ch. 10 - Prob. 2.4SRE

Ch. 10 - Stacy Carter worked 48 hours during the week...Ch. 10 - Prob. 2.6SRA Ch. 10 - Prob. 3.1SRQ Ch. 10 - What accounts are debited and credited when...Ch. 10 - Prob. 3.3SRQ Ch. 10 - Prob. 3.4SRE Ch. 10 - Prob. 3.5SRE Ch. 10 - This general journal entry was made to record the...Ch. 10 - Prob. 1CSR Ch. 10 - Prob. 2CSR Ch. 10 - Prob. 3CSR Ch. 10 - Prob. 4CSR Ch. 10 - Prob. 5CSR Ch. 10 - Prob. 1DQ Ch. 10 - Prob. 2DQ Ch. 10 - Prob. 3DQ Ch. 10 - Prob. 4DQ Ch. 10 - Prob. 5DQ Ch. 10 - Prob. 6DQ Ch. 10 - Prob. 7DQ Ch. 10 - Prob. 8DQ Ch. 10 - Prob. 9DQ Ch. 10 - Prob. 10DQ Ch. 10 - How does the direct deposit method of paying...Ch. 10 - What are the four bases for determining employee...Ch. 10 - Prob. 13DQ Ch. 10 - Prob. 14DQ Ch. 10 - Prob. 15DQ Ch. 10 - Prob. 1E Ch. 10 - Prob. 2E Ch. 10 - The monthly salaries for December and the...Ch. 10 - Prob. 4E Ch. 10 - Prob. 5E Ch. 10 - Prob. 6E Ch. 10 - On July 31, 2019, the payroll register for White...Ch. 10 - Prob. 1PA Ch. 10 - Prob. 2PA Ch. 10 - Prob. 3PA Ch. 10 - Prob. 4PA Ch. 10 - Prob. 1PB Ch. 10 - Prob. 2PB Ch. 10 - Prob. 3PB Ch. 10 - Prob. 4PB Ch. 10 - Prob. 1CTP Ch. 10 - Prob. 2CTP Ch. 10 - Prob. 1MF Ch. 10 - The new controller for CAR Company, a...Ch. 10 - Prob. 3MF Ch. 10 - Prob. 4MF Ch. 10 - Prob. 1ED

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The following information about the payroll for the week ended December 30 was obtained from the records of Qualitech Co.: Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.8% Instructions 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries: a. December 30, to record the payroll. b. December 30, to record the employers payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, 35,000 is subject to unemployment compensation taxes. 2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries: a. December 30, to record the payroll. b. January 5, to record the employers payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all 675,000 in salaries is subject to unemployment compensation taxes.
CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL TAXES Earnings for several employees for the week ended March 12, 20--, are as follows: Calculate the employers payroll taxes expense and prepare the journal entry as of March 12, 20--, assuming that FUTA tax is 0.6%, SUTA tax is 5.4%, Social Security tax is 6.2%, and Medicare tax is 1.45%.
Wallace Corporation summarizes the following information from its weekly payroll records during April. Prepare the two journal entries to record the payment of the payroll and the accrual of its payroll taxes for April. Assume an 8% FICA rate for both employees and the employer. Also assume a 5.4% state unemployment tax rate, a 0.6% federal unemployment tax rate, and that all wages are subject to all payroll taxes. Round to the nearest dollar.

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