Question

Help Save & Ch On January 8, the end of the first weekly pay period of the year, Regis Company's employees earned $21,760 of office salaries and $60,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $13,060 of federal income taxes, $1,320 of medical insurance deductions, and $940 of union dues. No employee earned more than $7,000 in this first period. Required: 1.1 Calculate below the amounts for each of these four taxes of Regis Company. Regis's state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. 1.2 Prepare the journal entry to record Regis Company's January 8 employee payroll expenses and liabilities. 2. Prepare the journal entry to record Regis's employer payroll taxes resulting from the January 8 payroll. Regis's state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. Complete this question by entering your answers in the tabs below. Req 1A Reg 18 Req 2 Calculate below the amounts for each of these four taxes of Regis Company. Regis's state unemployment tax rate is 5.4% of the first $7,000 pald to each employee. The federal unemployment tax rate is 0.6%. (Round your answers to 2 decimal places.) Regis Company's: January 8 earnings subject to tax Tax Tax Rate Tax Amount FICA-Social Security ICA-Medicare UTA UTA KReg 1A Req 1B >

Answer 1

Please find below table useful to compute desired results: -

D Tax rate Tax Amount |=E2*F2 |=E3*F3 |=E4*F4 =E5*F5 1A Tax Jan. 8 earnings subject to tax Particulars Given 1 FICA - Social Security =B2+B3 21760 60840 =6.2/100 =1.45/100 =B4 =B5 |=B11 Office Salaries =B2+B3 =B2+B3 |=B2+B3 3 Sales Salaries FICA - Medicare FUTA 4 FICA social security tax rate 5 FICA Medicare tax rate SUTA =B10 6 Federal income taxes 13060 Account Titles and Explanation Office Salaries Credit 7 Medical insurance Deductions 8 Union Dues 1320 940 Date Debit 1B Jan, 8 =B2 9 First period Earning Limit Sales Salaries =B3 7000 =5.4/100 =G2 |=G3 10 State Unemployment tax rate FICA Withheld - Social Security 11 Federal Unemployment tax rate =0.6/100 FICA Withheld - Medicare |=B6 |=B7 |=B8 =SUM(F8 F9)-SUM(G10:G14) Federal income tax withheld 12 Medical Insurance 13 Union Dues 14 Salaries Payable 15 ( to record the salaries expense and payable) =SUM(G18:G21) 16 Payroll Expenses (Net) Jan, 8 17 |=G2 FICA Withheld - Social Security 18 =G3 FICA Withheld - Medicare 19 =G4 FUTA Withheld 20 |=DG5 (to record the employer payroll expenses and liability) SUTA Withheld 21 22

End results would be as follows: -

1A Tax FICA - Social Security Tax rate Jan. 8 earnings subject to tax Particulars Given Tax Amount 6.20% 21,760.00 Ofice Salaries 82,600.00 5,121.20 82,600.00 1.45% Sales Salaries 60,840.00 FICA - Medicare 1,197.70 6.20% 1.45% 0.60% 5.40% FICA social security tax rate FUTA 82,600.00 82,600.00 495.60 4 FICA Medicare tax rate SUTA 4,460.40 5 6 Federal income taxes 7 Medical insurance Deductions 13,060.00 1,320.00 940.00 1B | Jan. 8 Account Titles and Explanation Credit Date Debit Union Dues 21,760.00 Office Salaries 9 First period Eaning Limit Sales Salaries 7,000.00 60,840.00 5.40% 0.60% FICA Withheld - Social Security State Unemployment tax rate 5,121.20 10 Federal Unemployment tax rate FICA Withheld - Medicare 1,197.70 11 13,060.00 Federal income tax withheld 12 Medical Insurance 1,320.00 13 Union Dues 940.00 14 Salaries Payable ( to record the salaries expense and payable) 60,961.10 15 16 2 Jan. 8 Payroll Expenses (Net) FICA Withheld - Social Security 11,274.90 17 5,121.20 18 FICA Withheld - Medicare 1,197.70 19 FUTA Withheld 495.60 20 SUTA Withheld 4,460.40 21 (to record the employer payroll expenses and liability) 22