Question

The totals from the first payroll of the year are shown below.

Total Pay = $36,195.10

FICA/OASDI = $ 2,244.10

FICA/HI = $ 524.83

FIT W/H = $ 6,515.00

State Tax W/H = $ 361.95

Union Dues = $ 500.00

Net Pay = $26,049.22

Assume the following tax rates:

1. * FICA tax—OASDI on employees: 6.2%.

2. FICA tax—HI on employees: 1.45%.

3. FIT withheld from employees.

4. FICA tax—OASDI on employers: 6.2%.

5. FICA tax—HI on employers: 1.45%.

6. Net FUTA tax: 0.6%.

7. SUTA tax: 3.7%.

Note – Correction to the Textbook - The 2% reduction on the Employee’s share of the OASDI expired on December 31, 2012. So, the correct rate to apply is 6.2% for both the employee and the employer.

Question # 2: Journalize the entry to record the payroll.

Question # 3: Journalize the entry to record the employer’s payroll taxes (assume a SUTA rate of 3.7%).

Question # 4: Journalize the entry to deposit the FICA and FIT taxes. Your answer to this Assignment should be submitted in a single Excel Workbook document.

Answer 1

А DE 2 Credit ($) Date 2 Debit ($) $36,195.10 в Journal Entries Account Titles Salaries Expense FICA-OASDI Payable FICA-HI Payable FIT Withholding Payable State Tax Withholding Payable Union Dues Payable Salaries Payable (To record the salaries expense) Payroll Tax Expense FICA-OASDI Payable FICA-HI Payable FUTA Payable SUTA Payable (To record the payroll tax expense FICA-OASDI Payable FICA-HI Payable FIT Withholding Payable $ 2,244.10 $ 524.83 $ 6,515.00 $ 361.95 $ 500.00 $ 26,049.22 $ 4,325.32 $ 2,244.10 $ 524.83 $ 217.17 $ 1,339.22 4 $ 4,488.20 $ 1,049.66 $ 6,515.00 Cash $ 12,052.86 (To record the Taxes deposited)

If you have any doubts ask in comments section

Do rate the answer