Question

- OTHGI Olivia Bennington works for JMK all year and earns a monthly salary of $12.400. There is no overtime pay Olivia's income tax withholding rate is 10% of gross pay. In addition to payroll taxes, Olivia elects to contribute 1% monthly to United Way JMK also deducts $150 monthly for co payment of the health insurance premium. As of September 30, Olivia had $111.600 of cumulative earnings (Click the icon to view payroll tax rate information) Read the requirements Requirement 1. Compute Olivia's net pay for October (Round all amounts to the nearest cent) Gross pay Withholding deductions Requirements Net (take-home) pay 1. Compute Olivia's net pay for October 2. Journalize the accrual of salaries expense and the payment related to the employment of Olivia Bennington Choose from any list or enter and 2 parts Print Done remaining

Answer 1

Gross Pay		$ 12,400
Employee income tax(10%)	$ 1,240
Employee OASDI(6.2%)	$ 769
Employee Medicare(1.45%)	$ 180
Employee health insurance	$ 150
Employee contribution to United way	$ 124
Total witholding		$ 2463
Net (Take away) pay	$	$ 9,937

Entry for salaries expenses:
		debit	credit
	Salaries expense	12400
	OASDI payable		769	=12400*6.2%
	Medicare taxes payable		180	=12400*1.45%
	Employee income taxes payable		1240	=12400*10%
	health insurance payable		150
	Charitable contribution (United way) payable		124
	Salaries payable		9937
	Salaries payable	9937
	cash		9937