Question

PAYROLL REGISTER AND JOURNAL ENTRIES WOR JOURNAL ENTRIES WORKSHEET Requirement a): Complete the payroll register (20 points) DEDUCTIONS State Net Pay EARNINGS Federal Income Income Total Deductions Tax Social Security Medicare Tax Tax Wage Rate Regular Wages Total Wages Overtime Wages Total Hours Worked 40 44 42 Accum Wages 99,500 78,500 6,700 Name D. Rump N. Pelowski D. Knatts Totals: 312.45 225.951 279.45 $42 $29 $36 Requirement b): Complete the employee and employer payroll journal entries (10 points) Dr Cr To record employee paychecks: Salaries Expense (Gross Pay) Social Security Tax Payable Medicare Tax Payable Emp. Federal Income Tax Pay State Income Tax Payable Salaries Payable (net pay) Assumptions: 1) Each employee is single and paid weekly. 2) Social Security taxes limited to the first $100,000. SS rate is 6% and Medicare rate is 1.5% 3) SUTA and FUTA are taxed on the first $7,000. Rates are 5.4% SUTA and .8% FUTA. To record employer's payroll taxes: Payroll Tax Expense Social Security Tax Payable Medicare Tax Payable State Unemployment Tax Pay Federal Unemployment Tax Pay

Answer 1

a)

		EARNINGS					DEDUCTIONS
		Total					Social		Federal	State
	Accum.	Hours	Wage	Regular	Overtime	Total	Security	Medicare	Income	Income	Total	Net
Name	Wages	Worked	Rate	Wages	Wages	Wages	Tax	Tax	Tax	Tax	Deductions	Pay
D. Rump	99500	40	$          42	1680.00	0.00	1680.00	30.00	25.20	312.45	250	617.65	1062.35
N. Pelowski	78500	44	$          29	1160.00	174.00	1334.00	80.04	20.01	225.95	115	441.00	893.00
D. Knotts	6700	42	$          36	1440.00	108.00	1548.00	92.88	23.22	279.45	75	470.55	1077.45
Totals:				4280.00	282.00	4562.00	202.92	68.43	817.85	440	1529.20	3032.80

b)

To record employee paychecks:	Dr.	Cr.
Salaries expense (Gross pay)	4562.00
Social security tax payable		202.92
Medicare tax payable		68.43
Emp. Federal income tax payable		817.85
State income tax payable		440.00
Salaries payable (net pay)		3032.80
To record employer's payroll taxes:	Dr.	Cr.
Payroll tax expense	289.95
Social security tax payable		202.92
Medicare tax payable		68.43
State unemployment tax payable (5.4% x $300)		16.20
Federal unemployment tax payable (0.8% x $300)		2.40