Lake Community College gives its faculty the option of receiving the balance of their contract at the end of the semester on May 17, 20--. The faculty can receive one lump-sum payment instead of receiving the remaining seven biweekly pays over the summer. Use the data given below to complete the Payroll Register on May 17. No employee has reached the OASDI ceiling, and all employees are taking the lump-sum payment. The state withholding rate is 2.0% of total earnings; the city withholding rate is 1.0% of total earnings. The biweekly wage bracket is used for federal income taxes. To calculate the tax withholdings, you must calculate the rounded tax for each pay and multiply by the number of pays in the lump-sum payment. Round all values to the nearest cent. Click here to access the Wage-Bracket Method Tables. For Period Ending May 17 Employee Name MaritalStatus No. ofW/HAllow. BiweeklyEarnings (a) Deductions (f) Total Lump-SumPayment (b) FICA (c) (d) (e) Net OASDI HI FIT SIT CIT Pay Kinnery, Thomas S 1 $2,000.00 $ $ $ $ $ $ $ Matthews, Mary M 2 2,600.00 Grace, Catherine S 0 2,200.00 Michael, Sean S 1 2,060.00 Totals $8,860.00 $ $ $ $ $ $ $ Compute the employer's FICA taxes for the pay period ending May 17. OASDI Taxes HI Taxes OASDI taxable earnings $ HI taxable earnings $ OASDI taxes $ HI taxes $ Feedback

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter9: Payroll Accounting: Employer Taxes And Reports

Section: Chapter Questions

Problem 1CP

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Lake Community College gives its faculty the option of receiving the balance of their contract at the end of the semester on May 17, 20--. The faculty can receive one lump-sum payment instead of receiving the remaining seven biweekly pays over the summer. Use the data given below to complete the Payroll Register on May 17. No employee has reached the OASDI ceiling, and all employees are taking the lump-sum payment. The state withholding rate is 2.0% of total earnings; the city withholding rate is 1.0% of total earnings. The biweekly wage bracket is used for federal income taxes.

To calculate the tax withholdings, you must calculate the rounded tax for each pay and multiply by the number of pays in the lump-sum payment.

Round all values to the nearest cent.

Click here to access the Wage-Bracket Method Tables.

For Period Ending May 17

Employee Name	Marital Status	No. of W/H Allow.	Biweekly Earnings	(a)	Deductions	(f)
Total Lump-Sum Payment	(b) FICA	(c)	(d)	(e)	Net
OASDI	HI	FIT	SIT	CIT	Pay
Kinnery, Thomas	S	1	$2,000.00	$	$	$	$	$	$	$
Matthews, Mary	M	2	2,600.00
Grace, Catherine	S	0	2,200.00
Michael, Sean	S	1	2,060.00
Totals			$8,860.00	$	$	$	$	$	$	$

Compute the employer's FICA taxes for the pay period ending May 17.

OASDI Taxes		HI Taxes
OASDI taxable earnings	$	HI taxable earnings	$
OASDI taxes	$	HI taxes	$

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