Part I.
An employee earns $22 per hour and 2 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 50 hours during the week. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was $177.10. a. Determine the gross pay for the week. b. Determine the net pay for the week.
Part II.
Assume that the social security tax rate is 6% and the Medicare tax rate is 1.5%. In the fol-lowing summary of data for a payroll period, some amounts have been intentionally omitted:
Earnings:
At regular rate ?
At overtime rate $80,000
Total earnings ?
Deductions:
Social security tax $32,400
Medicare tax $8,100
Federal income tax withheld $135,000
Medical insurance $18,900
Union dues ?
Total deductions $201,150
Net amount paid $338,850
Accounts debited:
Factory Wages $285,000
Sales Salaries ?
Office Salaries $120,000
a. Determine the amounts omitted in lines (1), (3), (8), and (12).
b. Journalize the entry to record the payroll accrual.
c. Journalize the entry to record the payment of the payroll.