The information on earnings and deductions for the pay period ended December 14 from King Company's payroll records is as follows:
Beginning | ||
Cumulative | ||
Name | Gross Pay | Earnings |
Burgess, J. L. | $410 | $6,750 |
Clayton, M. E. | 785 | 40,200 |
Drugden, T. F. | 860 | 38,500 |
Lui, L. W. | 990 | 39,700 |
Sparks, C. R. | 4,094 | 115,700 |
Stevers, D. H. | 850 | 6,810 |
For each employee, the Social Security tax is 6.2 percent of the first $118,500 and the employer's Social Security tax is 6.2 percent on the same earnings limit. The Medicare tax is 1.45 percent on all earnings. The federal unemployment tax rate is 0.6 percent of the first $7,000 of earnings of each employee. The state unemployment tax rate is 5.4 percent of the same base.
Required:
Determine the total taxable earnings for unemployment, Social Security, and Medicare. If an amount is zero, enter "0".
NAME |
BEGINNING CUMULATIVE EARNINGS |
TOTAL EARNINGS |
ENDING CUMULATIVE EARNINGS |
TAXABLE EARNINGS | ||
UNEMPLOY- MENT |
SOCIAL SECURITY |
MEDICARE |
||||
Burgess, J. L. | ||||||
Clayton, M. E. | ||||||
Drugden, T. F. | ||||||
Lui, L. W. | ||||||
Sparks, C. R. | ||||||
Stevers, D. H. | ||||||
Total |
Feedback
Partially correct
Prepare a general journal entry to record the employer's payroll taxes. If an amount box does not require an entry, leave it blank. If required, round your intermediate calculations and final answers to the nearest cent and use the rounded answers in subsequent computations.
GENERAL JOURNAL | PAGE | |||||
---|---|---|---|---|---|---|
DATE | DESCRIPTION | DOC. NO. | POST. REF. | DEBIT | CREDIT | |
20-- | ||||||
Dec. 14 | Payroll Tax Expense | |||||
FICA Social Security Tax Payable | ||||||
FICA Medicare Tax Payable | ||||||
State Unemployment Tax Payable | ||||||
Federal Unemployment Tax Payable | ||||||
To record employer's share of FICA taxes and employer's state and federal unemployment taxes. |
NAME | BEGINNING CUMULATIVE EARNINGS | TOTAL EARNINGS | ENDING CUMULATIVE EARNINGS | TAXABLE EARNINGS | ||
UNEMPLOYMENT | SOCIAL SECURITY | MEDICARE | ||||
Burgess, J. L. | $ 6,750.00 | $ 410.00 | $ 7,160.00 | $ 420.00 | $ 887.84 | $ 207.64 |
Clayton, M. E. | $ 40,200.00 | $ 785.00 | $ 40,985.00 | $ 420.00 | $ 5,082.14 | $ 1,188.57 |
Drugden, T. F. | $ 38,500.00 | $ 860.00 | $ 39,360.00 | $ 420.00 | $ 4,880.64 | $ 1,141.44 |
Lui, L. W. | $ 39,700.00 | $ 990.00 | $ 40,690.00 | $ 420.00 | $ 5,045.56 | $ 1,180.01 |
Sparks, C. R. | $ 110,900.00 | $ 4,094.00 | $ 114,994.00 | $ 420.00 | $ 14,259.26 | $ 3,334.83 |
Stevers, D. H. | $ 6,810.00 | $ 850.00 | $ 7,660.00 | $ 420.00 | $ 949.84 | $ 222.14 |
Total | $ 242,860.00 | $ 7,989.00 | $ 250,849.00 | $ 2,520.00 | $ 31,105.28 | $ 7,274.62 |
Social security is 6.2% payable both by employer and employee. |
No workers earnings is beyond non deduction level of $118,500 |
Federal unemployment tax rate is 0.6% on first $7,000 earnings . It is payable by employer only. |
State unemployment tax is 5.4%. Total of state and Federal will be 6% |
Medicare is 1.45% payable by both employer and ,employee. So total is 2.9% |
Details | Debit | Credit |
Wages as per pay roll | 250849 | |
Employers contribution to unemployment | ||
Federal unemployment tax | 252 | |
State unemployment tax | 2268 | |
Employers contribution to Social security | 15552.64 | |
Employers contribution for Medicare | 3637.31 | |
Withholding for FUTA unemployment tax | 252 | |
Withholding for SUT | 2268 | |
Liability for Social security tax | 31105.3 | |
Liability for medicare | 7274.62 | |
Cash | 231659 | |
272559 | 272559 |
The information on earnings and deductions for the pay period ended December 14 from King Company's...
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