00:01
On january 8th, the end of the first weekly pay period of the year, regis company's payroll register showed that its employees earned $22 ,760 of office salaries and $65 ,840 of sales salaries.
00:15
Withholdings from the employee salaries include fica, social security taxes at the rate of 6 .2%, fica medicare taxes at the rate of 1 .45%, $12 ,860 of federal income taxes, $1 ,340 % of medical insurance deductions and $840 of union dues.
00:34
No employee earned more than $7 ,000 in this first period.
00:38
Calculate below the amounts for each of the four taxes of regis company.
00:42
Regis ' merit rating reduces its state unemployment tax rate to 4 % of the first $7 ,000 paid for each employee.
00:49
The federal unemployment rate tax is 6 .6%.
00:53
Prepare the journal entry to record regis company's january 8th employee payroll expense and liabilities.
01:00
Prepare the journal entry to record regis ' employer payroll taxes resulting from the january 8th payroll.
01:06
Regis ' merit rating reduces its state unemployment tax rate to 4 % of the first $57 ,000 paid each employee.
01:17
The federal rate unemployment is 0 .6%.
01:22
So for part one, we're going to calculate the amounts for each of the four taxes of regis company.
01:49
So we're, we're going to calculate.
01:50
So we have the tax in one column.
01:55
We're going to have the january 8th earning subject of tax in this column.
02:11
We're going to put the tax rate in this column.
02:16
And in our final column, we're going to calculate the tax amount.
02:24
The taxes we have are fica social security.
02:37
We have fica medicare, the futa, and then we have the suta.
03:06
Our tax amounts or our tax rates for fica social security are 6 .2%.
03:18
For fica medicare, it's 1 .45%.
03:23
For futa, it's 0 .60%.
03:26
And for the suta, it is 4%.
03:31
For fica social security, we have the $22 ,760 plus the $65 ,840.
03:42
This gives us a total earning subject to be taxed of $88 ,600.
03:52
And that goes in every box because that is the amount that is subject to tax for each of these.
04:01
And then we can calculate.
04:03
6 .2 % of $88 ,600 is $5 ,493 .20.
04:10
Cents 1 .45 % of $88 ,600 is $1 ,284 .70.
04:20
0 .6 % of $88 ,600 is $531 .60.
04:27
And 4 % of $88 ,600 is $3 ,544...