Question

Jhansy Garza's regular hourly wage rate is $15.00, and she receives a wage of 1½ times the regular hourly rate for work in excess of 40 hours. During a March weekly pay period, Jhansy worked 43 hours. Her gross earnings prior to the current week were $6,500. Jhansy is married and claims three withholding allowances. Her only voluntary deduction is for group hospitalization insurance at $40 per week.

MARRIED Persons ― WEEKLY Payroll Period
(For Wages Paid through December 2017)
If the wages are ―		And the number of withholding allowances claimed is ―
At least	But less than	0	1	2	3	4	5	6	7	8	9	10
		The amount of income tax to be withheld is ―
500	510	34	27	19	11	4	0	0	0	0	0	0
510	520	35	28	20	12	5	0	0	0	0	0	0
520	530	37	29	21	13	6	0	0	0	0	0	0
530	540	38	30	22	14	7	0	0	0	0	0	0
540	550	40	31	23	15	8	0	0	0	0	0	0
550	560	41	32	24	16	9	1	0	0	0	0	0
560	570	43	33	25	17	10	2	0	0	0	0	0
570	580	44	34	26	18	11	3	0	0	0	0	0
580	590	46	35	27	19	12	4	0	0	0	0	0
590	600	47	36	28	20	13	5	0	0	0	0	0
600	610	49	38	29	21	14	6	0	0	0	0	0
610	620	50	39	30	22	15	7	0	0	0	0	0
620	630	52	41	31	23	16	8	1	0	0	0	0
630	640	53	42	32	24	17	9	2	0	0	0	0
640	650	55	44	33	25	18	10	3	0	0	0	0
650	660	56	45	34	26	19	11	4	0	0	0	0
660	670	58	47	35	27	20	12	5	0	0	0	0
670	680	59	48	37	28	21	13	6	0	0	0	0
680	690	61	50	38	29	22	14	7	0	0	0	0
690	700	62	51	40	30	23	15	8	0	0	0	0

a. Compute the following amounts for Jhansy’s wages for the current week. (Round FICA taxes, State income taxes and Net pay answers to 2 decimal places, e.g. 52.55.)

(1) Gross earnings.		$enter a dollar amount
(2) FICA taxes. (Assume a 7.65% rate on maximum of $127,200.)		$enter a dollar amount rounded to 2 decimal places
(3) Federal income taxes withheld.		$enter a dollar amount
(4) State income taxes withheld. (Assume a 2.0% rate.)		$enter a dollar amount rounded to 2 decimal places
(5) Net pay.

b. Record Jhansy’s pay. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75.)

Answer 1

Normal Pay (40*15)		$      600.00
Overtime Pay (Overtime hours = 43 - 40 =3) (Overtime rate = 15*1.5 = 22.5) (3*22.5)		$         67.50
Total Gross pay (Rounded to Dollar Amount)		$            668
Total Gross Pay till the Date = 6500+667.50 = 7167.5 which is less than maximum limit of 127,200)
FICA taxes (668*7.65%)		$         51.10
Federal income taxes withheld (where claims three withholding allowances and 667.50 gross pay)		$               27
State income taxes withheld (667.50*2%)		$         13.35
Total Gross pay		$      668.00
Less: Deductions
Group hospitalization insurance	$                 40
FICA taxes	$           51.10
Federal income taxes withheld	$                 27
State income taxes withheld	$           13.35	$      131.45
Net pay		$      536.55

Date	Accounts title and explanations	Debit	Credit
	Salaries and Wages Expense	$               668
	FICA taxes payable		$         51.10
	Federal Income taxes payable		$               27
	State Income Tax payable		$         13.35
	Group Insurance Payable		$               40
	Salaries and Wages Payable		$      536.55
	To record the Jhansy’s pay.