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Accounting help needed!!!?
1) An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $24,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, .8% on the first $7,000. What is the net amount to be paid the employee?
a. $568.74
b. $601.50
c. $660.00
d. $574.90
2) The following totals for the month of April were taken from the payroll register of Magnum Company.
Salaries $12,000
FICA taxes withheld 550
Income taxes withheld 2,500
Medical insurance deductions 450
Federal Unemployment Taxes 32
State Unemployment Taxes 216
The entry to record accrual of employer’s payroll taxes would include a
a. debit to Payroll Tax Expense for $248
b. credit to FICA Taxes Payable for $1,100
c. credit to Payroll Tax Expense for $248
d. debit to Payroll Tax Expense for $798
3)Assuming no employees are subject to ceilings for their earnings, Jensen Company has the following information for the pay period of January 15 - 31, 20xx.
Gross payroll $10,000 Federal income tax withheld $1,500
Social security rate 6% Federal unemployment tax rate .8%
Medicare rate 1.5% State unemployment tax rate 5.4%
Assuming that all wages are subject to federal and state unemployment taxes, the Payroll Taxes Expense would be recorded as:
a. $1,370
b. $750
c. $620
d. $2,870
please please help me!!! I need it very badly! Thanks in advance!
1 Answer
- Old GuyLv 78 years agoFavorite Answer
(1)
Regular 40 x 15 = 600.00
Overtime 8 x 15 x 1.5 = 180.00
Total Wages 780.00
Federal Income Tax Withheld (120.00)
Social Security Tax Withheld 780.00 x 6% = (46.80)
Medicare Tax Withheld 780.00 x 1.5% = (11.70)
Net Pay 601.50
The answer is B.
(2)
FICA Tax 550
Federal Unemployment Taxes 32
State Unemployment Taxes 216
Total Payroll Tax Expense 798
The answer is D.
(3)
Social Security Tax 10,000 x 6% = 600
Medicare Tax 10,000 x 1.5% = 150
Federal Unemployment Tax = 10,000 x .8% = 80
State Unemployment Tax = 10,000 x 5.4% = 540
Total Payroll Taxes Expense 1,370
The answer is A.