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Concept explainers
Calculating gross and net pay (Learning Objective 8) 10-15 min.
Ali Campbell works as a cook for Jenny’s diner. Her regular pay rate is $15 per hour, with time-and-a-half for hours in excess of 40 per week. Campbell’s payroll deductions include withheld income tax of 10% of total earnings, FICA tax, and a weekly deduction of $15 for a charitable contribution to United Way. Campbell’s employer is required to pay SUTA and FUTA tax. Use a 5.4% SUTA tax rate, and a .6% FUTA tax rate. The state
Requirements
- 1. Assuming Campbell worked 49 hours during the week, compute her gross pay and net pay for the week. Round amounts to the nearest cent.
- 2. Make
journal entries to record wages expense and payroll tax expense for the week. Explanations are not required. Round amounts to the nearest cent.
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Chapter 9 Solutions
Financial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (5th Edition)
- The following information is available for the employees of Webber Packing Company for the first week of January Year 1 1. Kayla earns $26 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 50 hours the first week in January. Kayla’s federal income tax withholding is equal to 11 percent of her gross pay. Webber pays medical insurance of $100 per week for kayla and contributes $57 per week to a retirement plan for her. 2. Paula earns a weekly salary of $1,150. Paula’s federal income tax withholding is 17 percent of her gross pay. Webber pays medical insurance of $145 per week for Paula and contributes $135 per week to a retirement plan for her. 3. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $75 per week for Paula. Assume the Social Security tax rate is 6 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent of total salaries. The state unemployment tax rate is 5.4…arrow_forwardSubject : accounting' Lacy Crawford has a regular hourly rate of $21.60. In a week when she worked 40 hours and had deductions of $110.60 for federal income tax, $53.60 for social security tax, and $12.50 for Medicare tax, her net pay wasarrow_forwardThe following information is available for the employees of Webber Packing Company for the first week of January Year 1 1. Kayla earns $26 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 50 hours the first week in January. Kayla’s federal income tax withholding is equal to 11 percent of her gross pay. Webber pays medical insurance of $57 per week to a retirement plan for her. 2. Paula earns a weekly salary of $1,150. Paula’s federal income tax withholding is 17 percent of her gross pay. Webber pays medical insurance of $145 per week for Paula and contributes $135 per week to a retirement plan for her. 3. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $75 per week for Paula. Assume the Social Security tax rate is 6 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent of total salaries. The state unemployment tax rate is 5.4 percent and the federal unemployment…arrow_forward
- The following information is available for the employees of Webber Packing Company for the first week of January Year 1: Kayla earns $27 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 45 hours the first week in January. Kayla's federal income tax withholding is equal to 9 percent of her gross pay. Webber pays medical insurance of $75 per week for Kayla and contributes $55 per week to a retirement plan for her. Paula earns a weekly salary of $1,400. Paula's federal income tax withholding is 19 percent of her gross pay. Webber pays medical insurance of $105 per week for Paula and contributes $120 per week to a retirement plan for her. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $70 per week for Paula. Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent of total salaries. The state unemployment tax rate is 5.4 percent and…arrow_forwardRequired information [The following information applies to the questions displayed below.] The following information is available for the employees of Webber Packing Company for the first week of January Year 1: 1. Kayla earns $25 per hour and 1/2 times her regular rate for hours over 40 per week. Kayla worked 46 hours the first week in January. Kayla's federal income tax withholding is equal to 10 percent of her gross pay. Webber pays medical insurance of $80 per week for Kayla and contributes $59 per week to a retirement plan for her. 2. Paula earns a weekly salary of $1,350. Paula's federal income tax withholding is 17 percent of her gross pay. Webber pays medical insurance of $115 per week for Paula and contributes $120 per week to a retirement plan for her. 3. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $80 per week for Paula. Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries and the…arrow_forwardThe following Information is available for the employees of Webber Packing Company for the first week of January Year 1: Kayla earns $27 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 45 hours the first week in January. Kayla's federal Income tax withholding is equal to 9 percent of her gross pay. Webber pays medical insurance of $75 per week for Kayla and contributes $55 per week to a retirement plan for her. Paula earns a weekly salary of $1,400. Paula's federal Income tax withholding Is 19 percent of her gross pay. Webber pays medical insurance of $105 per week for Paula and contributes $120 per week to a retirement plan for her. Vacation pay ls accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $70 per week for Paula. Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries and the Medicare tax rate Is 1.5 percent of total salaries. The state unemployment tax rate is 5.4 percent and…arrow_forward
- The following information is available for the employees of Webber Packing Company for the first week of January Year 11. Kayla earns $26 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 50 hours the first week in January. Kayla's federal income tax withholding is equal to 11 percent of her gross pay. Webber pays medical insurance of $100 per week for kayla and contributes $57 per week to a retirement plan for her.2. Paula earns a weekly salary of $1,150. Paula's federal income tax withholding is 17 percent of her gross pay. Webber pays medical insurance of $145 per week for Paula and contributes $135 per week to a retirement plan for her.3. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $75 per week for Paula.Assume the Social Security tax rate is 6 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent of total salaries. The state unemployment tax rate is 5.4…arrow_forwardThe following information is available for the employees of Webber Packing Company for the first week of January Year 11. Kayla earns $26 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 50 hours the first week in January. Kayla's federal income tax withholding is equal to 11 percent of her gross pay. Webber pays medical insurance of $100 per week for kayla and contributes $57 per week to a retirement plan for her.2. Paula earns a weekly salary of $1,150. Paula's federal income tax withholding is 17 percent of her gross pay. Webber pays medical insurance of $145 per week for Paula and contributes $135 per week to a retirement plan for her.3. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $75 per week for Paula.Assume the Social Security tax rate is 6 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent of total salaries. The state unemployment tax rate is 5.4…arrow_forward6. Sadie White receives an hourly rate of $30, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $300; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the net amount to be paid to White?|arrow_forward
- The ABC Corporation has three employees who each earn $2,000 each per month. Calculate the payroll using the following rates: (Note: These rates may not be the rates you have worked with during the class, but are the rates that you will use for this exam.) El rate: CPP rate: Annual CPP exemption: Income Tax: Provincial combined): 1.73% 4.95% $3,500 25% (Federal and None of the employees have reached the maximum amount for El or CPP deductions this year. Using the Excel working papers for Part F: Payroll: Prepare the journal entry to record the March 1. 30 payroll. 2. Prepare a second journal entry to record the additional employer payroll expenses for the March 30 payroll. (It is not necessary to record Vacation Pay payable)arrow_forwardCarrie Rosenburg worked 45 hours the first week of the calendar year and earns regular wages of $16/hour. She is paid an overtime rate 1.5 times her regular wage rate, contributes 4% of her gross pay to a 401(k) plan, and contributes $30/week to a flexible spending account. Her Social Security tax for the week is $____?arrow_forwardTo help pay for college, you worked part-time at a local restaurant, earning $22,000 in wages and tips. Employee's Rates: 7.65% on first $ 142,800 of income. 1.45% of income in excess of $142,800. Matching Rates Paid by the Employer: 7.65% on first $142,800 paid in wages. 1.45% of wages paid in excess of $142,800. Self-Employed Rates: 15.3% on first $142, 800 of net profits. 2.9% of net profits in excess of $ 142,800. calculate the FICA taxes, the FICA taxes are $_______?arrow_forward
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