The journal entries reflect the sale on account and the subsequent cash collection. In January gross earning in Waterway Company totaled $100.000 all earning are subject to 7.65% FICA taxes 5.40 state unemployment taxes an 0.60% federal unemployment taxes Prepare the entry to record for January payroll taxes
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Gross earnings = $100,000. FICA taxes rate = 7.65%. State unemployment taxes rate = 5.40%. Federal unemployment taxes rate = 0.60%. Show more…
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On January 8, 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. Withholdings from the employees' 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. No employee earned more than $7,000 in this first period. Required: 1.Calculate below the amounts for each of these four taxes of Regis Company. Regis's merit rating reduces its state unemployment tax rate to 4% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.6%. (Round your answers to 2 decimal places.) Prepare the journal entry to record Regis Company’s January 8 (employee) payroll expense and liabilities. Prepare the journal entry to record Regis's (employer) payroll taxes resulting from the January 8 payroll. Regis's merit rating reduces its state unemployment tax rate to 4% of the first 57.000 paid each employee. The federal unemployment tax rate is 0.6%.
Jennifer S.
Payroll Accounting and Discussion of Labor Costs Blitzen Marketing Research paid its weekly and monthly payroll on January 31. The following information is available about the payroll: Item Amount Monthly salaries $237,480 Hourly wages $585,000 FICA: Social Security (both employee and employer) 6.20% Medicare (both employee and employer) 1.45% Withholding for federal income taxes $108,500 Federal unemployment taxes $1,200 State unemployment taxes $4,000 Blitzen will pay both the employer's taxes and the taxes withheld on April 15. Required: 1. Prepare the journal entries to record the payroll payment and the incurrence of the associated expenses and liabilities. If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest penny. 2. What amount does Blitzen pay in excess of gross pay as a result of taxes? (Note: Provide both an absolute dollar amount and as a percentage of gross pay, rounding to two decimal places.) 4. Conceptual Connection: If another employee can be hired for $60,000 per year, what would be the total cost of this employee to Blitzen? Do not round intermediate calculations and round your final answer to two decimal places.
Akash M.
Title: Salary Expense and Payroll Tax Expense Ergo Company has one employee who is paid a salary of $8,500 per month. Payroll information for the first month of the year is: Federal and state income tax withheld: $1,275 FICA (social security and Medicare): 7.65% Federal unemployment (FUTA and SUTA) tax rate (on the 1st $7,000 of wages): 6.2% Insurance Premiums (paid by Employees): $400 Insurance Premiums (paid by Employer): $600 Part I: Prepare Ergo's journal entry to record the first month's salary expense and employee withholdings. Payroll tax expense will be recorded in part 2. Date Account Name Debit Credit Part 2: Prepare Ergo's journal entry to record employer payroll taxes for the first month's payroll. Date Account Name Debit Credit Part 3: Prepare Ergo's journal entry to record fringe benefits for the first month's payroll. Date Account Name Debit Credit
Aarya B.
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