Question

Problem 13-4 Below is a payroll sheet for Pina Import Company for the month of September 2017. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $118,500. In addition, 1.45% is charged both employer and employee for an employee's wages in excess of $118,500 per employee. Your answer is partially correct. Try again. Complete the payroll sheet. (Round answers to 2 decimal places, e.g. 15.26.) Unemployment Tax Earnings to Aug. 31 September Earnings Income Tax Withholding Name State Federal B. D. Williams $6,800 $800 D. Raye 6,700 700 K. Baker 7,700 1,200 F. Lopez 14,500 1,900 A. Daniels 106,600 13,200 B. Kingston 111,500 15,600 Total

Answer 1

					Unemployment Tax
	Earnings	September	Income Tax
Name	to Aug. 31	Earnings	Withholding	FICA	State	Federal
B. D. Williams	6800	800	80	61.20	2.00	1.60
D. Raye	6700	700	70	53.55	3.00	2.40
K. Baker	7700	1200	120	91.80	0.00	0.00
F. Lopez	14500	1900	190	145.35	0.00	0.00
A. Daniels	106600	13200	1320	929.20	0.00	0.00
B. Kingston	111500	15600	1560	660.20	0.00	0.00
Total	253800	33400	3340	1941.30	5.00	4.00

Account Titles and Explanation	Debit	Credit
Salaries and wages expense	33400.00
Withholding taxes payable		3340.00
FICA taxes payable		1941.30
Cash		28118.70
(To record the payment of the payroll)
Payroll tax expense	1950.30
FICA taxes payable		1941.30
FUTA taxes payable		4.00
SUTA taxes payable		5.00
(To record the payroll tax expenses)
Withholding taxes payable	3340.00
FICA taxes payable	3882.60
FUTA taxes payable	4.00
SUTA taxes payable	5.00
Cash		7231.60
(To record the payment of the payroll liabilities)