Question

Below is a payroll sheet for Martinez 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 Complete the payroll sheet. (Round answers to 2 decimal places, e.g. 15.26.) Unemployment Tax Earnings to Aug. 31 September Earnings Income Tax Name Withholding FICA State Federal B. D. Wiliams $6,700 $700 D. Raye 6,500 600 K. Baker 7,600 1,200 F. Lopez 14,000 2,000 A. Daniels 109,100 14,200 dv B. Kingston 114,100 16,500 Total S $ Make the necessary entry to record the payment of the payroll.(If no entry is requined, select "No Entry account titiles are automatically indented when amount is entered. Do not indent manually.) for the account titles and enter 0 for the amounts. Credit

Answer 1

Martinez Import Company Requirement a Federal U.C. Ref C 70 State U.C. 3.00 5.00 2.40 4.00 Name B.D. Williams D. Raye K. Baker F. Lopez A. Daniels B. Kingston Total Earnings to Aug. 31 6,700 6,500 7,600 14,000 1,09,100 1,14,100 2,58,000 September | Income Tax Earnings Withholding 700 600 1,200 120 2,000 200 14,200 1,420 16,500 1,650 35,200 3,520 FICA 53.55 45.90 91.80 153.00 205.90 239.25 789.40 a b $8.00 $6.40 $14,200 x 1% = $205 $16,500 x 1.45% = $239.25 ($7,000 - $6,700) < 1.00% = $3.00 ($7,000 - $6,700) x 0.80% = $2.40 Wages and Salaries Expense Withholding Taxes Payable FICA Taxes Payable Cash 3,520.00 789.40 30,890.60 803.80 Cava Davable Requirement b Payroll Tax Expense FICA Taxes Payable Federal Unemployment Tax Payable State Unemployment Tax Payable 789.40 Requirement c Dec 31 3,520.00 1,578.80 Withholding Taxes Payable FICA Taxes Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Cash 8.00 5,113.20