Question

ulver Hardware Company’s payroll for November 2017 is summarized below.

					Amount Subject to Payroll Taxes
						Unemployment Tax
Payroll		Wages Due		FICA		Federal		State
Factory		$123,500		$123,500		$39,500		$39,500
Sales		30,800		30,800		4,000		4,000
Administrative		36,000		36,000
Total		$190,300		$190,300		$43,500		$43,500

At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee’s wages to $118,500 and 1.45% in excess of $118,500. Of the $190,300 wages subject to FICA tax, $19,100 of the sales wages is in excess of $118,500. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $15,600 for factory, $7,500 for sales, and $6,400 for administrative.

Prepare a schedule showing the employer’s total cost of wages for November by function

Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer’s payroll taxes

Answer 1

240 answers

Answer

a ) prepare a schedule showing the employer total cost of wages for november by function

	factory	sales	administrative	total
salaries and wages	123500	30800	36000	190300
FICA taxes	9447	1221	2754	13422
FUTA taxes	316	32	0	348
SUTA taxes	1000	100	0	1100
total cost	134263	32153	38754	205170

computation of taxes

	factory	working
salaries and wages	123500
FICA taxes	9447,75	7.65% * 123500
FUTA taxes	316	0.8% * 39500
SUTA taxes	987,5	2.5% * 39500
total cost	134250

	sales
salaries and wages	30800
FICA taxes	1221
FUTA taxes	32	0.8% * 4000
SUTA taxes	100	2.5 % * 4000
total cost	32153

12350 * 7.65 % = 944 , 19100 * 1.45% = 277, 944 + 277= 1221

	administrative
salaries and wages	36000
FICA taxes	2754	7.65 % * 36000
FUTA taxes	0
SUTA taxes	0
total cost	38754