Question

Stark Company has five employees. Employees paid by the hour earn $15 per hour for the regular 40-hour workweek and $20 per hour beyond the 40 hours per week. Hourly employees are paid every two weeks, but salaried employees are paid monthly on the last biweekly payday of each month. FICA Social Security taxes are 6.2% of the first $128,400 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. The company has a benefits plan that includes medical insurance, life insurance, and retirement funding for employees. Under this plan, employees must contribute 5% of their gross income as a payroll withholding, which the company matches with double the amount. Following is the partially completed payroll register for the biweekly period ending August 31, which is the last payday of August. a. Complete this payroll register by filling in all cells for the pay period ended August 31. b, c, d & e. Prepare the August 31 journal entry to: b. Record the accrued biweekly payroll and related liabilities for deductions. c. Record the employer's cash payment of the net payroll of part b. d. Record the employer's payroll taxes including the contribution to the benefits plan. e. Pay all liabilities (except for the net payroll in part c) for this biweekly period. Complete this question by entering your answers in the tabs below. Reg A Req B to E Complete this payroll register by filling in all cells for the pay period ended August 31. (Round your answers to 2 decimal places.)

Answer 1

Employee	Cumulative pay ( excludes current Period)	Current Period Gross pay	Fit Withholding	FUTA	FICA S.S employee	FICA medicare Employee	Employee Plan withholding	Employee Net Pay
Pay type	Pay hours	Gross pay	Sit withHolding	SUTA	FICA S.S employer	FICA medicare Employer	Employer Plan Expense
Kathleen	$127,700	salary		$7,000	$2,550	0	43.4	101.5	$350	$3,435
$520	$0.0	43.4	101.5	$700
Anthony	$6,450	salary		1010	$102	3.3	62.62	14.645	50.5	$749
31	29.7	62.62	14.645	101
Nichole	$16,200	Regular	80	1200	132	0	86.8	20.3	70	$1,055
overtime	10	200	36	0	86.8	20.3	140
Zoey	$6,750	Regular	80	1200	122	1.5	80.6	18.85	65	$981
overtime	5	100	33	13.5	80.6	18.85	130
Gracie	$5,550	Regular	70	1050	112	6.3	65.1	15.225	52.5	$773
overtime	0		32	56.7	65.1	15.225	105
Totals	$162,650			$11,760	$3,018	11.1	338.52	170.52	$588	$6,993
$652	$99.9	338.52	170.52	$1,176

Futa tax and suta tax  is charged on first $ 7000 wages of each employee and deposited by employer to state and federal goverment

this tax is employer laibility and employee wages are not deducted , employer pay this tax on gross wages of employee

so in case kathleen and nicole wages are more than $ 7000 this means tax is already collected on first 7000

in case of anthony on $ 550 (7000-6450) futa and sutal is taxable

in case of zoe $250 (7000-6750)futa and sutal is taxable

and in case of gracie $ 1050 futa and sutal is taxable

Employee net pay is calculated ( answers are rounded off)

(gross pay -Fit holding - sit holding -  fica ss employee contribution -Fica medicare employee conibution- employee plan withholding)

Kathleen =7000-2550-520-43.4-101.5-350=3435

Anthony= 1010-102-31-62.62-14.645-50.5 =749

Nichole = 1400-132-36-86.8-20.3-70= 1050

zoey =1300-122-33-80.6-18.85-65=981

gracie =1050-112-32-65.1-15.225- 52.5 =773