Question

in al More Info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% on all earnings; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. Print Done Louis Welch is general manager of Moonwalk Salons. During 2018, Welch worked for the company all year at a $13,400 monthly salary. He also earned a year-end bonus equal to 5% of his annual salary. Welch's federal income tax withheld during 2018 was $938 per month, plus $1,206 on his bonus check. State income tax withheld came to $70 per month, plus $50 on the bonus. FICA tax was withheld on the annual earnings. Welch authorized the following payroll deductions: Charity Fund contribution of 1% of total earnings and life insuran $25 per month. Moonwalk incurred payroll tax expense on Welch for FICA tax. The company also paid state unemployment tax and federal unemployment tax. (Click the icon to view payroll tax rate information.) 1 Requirements Net pay: 1. Compute Welch's gross pay, payroll deductions, and net pay for the full year 2018. Round all amounts to the Gross pay 168,840 arest dollar. 2. Compute Moonwalk's total 2018 payroll tax expense for Welch. Withholding deductions: 3. Make the journal entry to record Moonwalk's expense for Welch's total earnings for the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus Expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required Federal income tax 12462 Employee OASDI tax State income tax 4. Make the journal entry to record the accrual of Moonwalk's payroll tax expense for Welch's total earnings Employee Medicare tax 5. Make the journal entry for the payment of the payroll withholdings and taxes. Charity fund contribution Life insurance Print Done Total withholdings Net (take-home) pay

Answer 1

ans 1
Gross pay		168840
(13400*12)*1.05 (including bomus)
Withholding deductions
Federal Income tax (938*12)+1206	12462.00
Employee OASDI tax (118500*6.2%)	7347.00
State Income Tax (70*12)+50	890.0
Employee Medicare taxes (168840*1.45%)	2448.18
Charity Fund contribution (168840*1%)	1688.40
Life Insurance (25*12)	300		rounded off
Total withholding		25135.58	25136
Net pay		143704.42	143704
ans 2
Payroll tax expense
Employee OASDI tax (118500*6.2%)	7347.00
Employee Medicare taxes (168840*1.45%)	2448.18
FUTA (7000*.6%)	42
SUTA (7000*5.4%)	378	rounded off
Payroll tax expense	10215.18	10215
ans 3
	Dr	Cr		rounded off
Salaries expenses	160800
Bonus expenses	8040
Federal Income tax payable		12462.00
Employee OASDI tax payable		7347.00
State Income Tax payable		890.00
Employee Medicare taxes payable		2448.18		2448
Charity Fund contributionpayable		1688.40
Life Insurance payable		300.00
Cash		143704.42		143704
ans 4
Payroll tax expense	10215.18			10215
Employee OASDI tax payable		7347.00
Employee Medicare taxes payable		2448.18		2448
FUTA payable		42.00
SUTA payable		378.00
ans 5
Federal Income tax payable	12462.00
Employee OASDI tax payable	14694.00
State Income Tax payable	890.00
Employee Medicare taxes payable	4896.36			4896
Charity Fund contributionpayable	1688.40			1688
Life Insurance payable	300.00
FUTA payable	42.00
SUTA payable	378.00
Cash		35350.76		35351

In case rounded off than enter the last column amt else in answer rounded off to two decimal