BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

Precision Labs has two employees. The following information was taken from its individual earnings records for the month of September. Determine the missing amounts assuming that the Social Security tax is 6.2 percent, the Medicare tax is 1.45 percent, and the state income tax is 20 percent of the federal income tax. Assume that the employees are married and have one withholding allowance. All earnings are subject to Social Security and Medicare taxes. Round amounts to the nearest penny.

images

To determine

Find the missing amounts by assuming that employees are married and have one withholding allowance.

Explanation

Payroll:

Payroll refers to the total amount that is required to be paid by the company to its employees during a week, month or other period. It is the financial record of the wages and bonus, net pay, salary and deductions of a company’s employees.

Find the missing amounts by assuming that employees are married and have one withholding allowance.

Particulars

Person  B

(A)

Person R

(B)

Total

(A+B)

Regular earnings3,500.00(4) 2,618.006,118.00
Overtime earnings(1) 146.00120.00266
Total earnings3,646.00(4) 2,738.006,384.00
Federal income tax withheld312.08(5) 175.89487.97
State income tax withheld (2) 62.4235.1897.6
Social Security tax withheld226.05169.76395.81
Medicare tax withheld52.8739.792.57
Charity withheld35.0097132
Total deductions688.42517.531,205.95
Net pay(3) 2,957.582,220.475,178.05

(Table 1)

Working notes:

(1) Calculate the overtime earnings for Person B:

Overtime earnings for Person B = Total earningsRegular earnings=$3,646.00$3,500.00=$146.00

(2) Calculate the state income tax withheld for Person B:

State income tax for Person B= Federal income tax withheld ×Percent of state income tax=$312

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Explain how absolute advantage and comparative advantage differ.

Principles of Microeconomics (MindTap Course List)

Unearned revenue is adjusted into an expense account at the end of the accounting period.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

It is a fact that the federal government (1) encouraged the development of the savings and loan industry, (2) v...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)