Question & Answer: Complete the payroll sheet. (Round answers to 2 decimal places, e.g. 15.26.) Unemployment Tax September Income Tax W…..

Below is a payroll sheet for Swifty 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.

Don't use plagiarized sources. Get Your Custom Essay on
Question & Answer: Complete the payroll sheet. (Round answers to 2 decimal places, e.g. 15.26.) Unemployment Tax September Income Tax W…..
GET AN ESSAY WRITTEN FOR YOU FROM AS LOW AS \$13/PAGE

Complete the payroll sheet. (Round answers to 2 decimal places, e.g. 15.26.) Unemployment Tax September Income Tax Withholding Earnings Name Earnings FICA State Federal to Aug. 31 \$6,900 6,800 7,500 12,200 106,300 111,100 \$900 800 1,100 2,000 13,100 16,900 B. D. Williams 90 0.8 D. Raye 1.6 80 110 200 1310 2 K. Baker 0 0 F. Lopez 0 0 A. Daniels 0 0 B. Kingston 1690 0 0 Total

The following is the payroll sheet.

 Name Earnings to Aug 31 September earnings Income tax withholidings FICA State Federal Notes B. D.Williams \$6,900 \$900 \$90 68.85 \$1 \$0.80 D. Raye 6,800 800 80 61.20 2.00 1.60 K.Baker 7,500 1,100 110 84.15 0 0 F.Lopez 12,200 2,000 200 153 0 0 A.Daniels 106,300 13,100 1,310 946.35 0 0 note 1 B.Kingston 111,100 16,900 1,690 703.85 0 0 note 2 Total \$250,800 34,800 3,480 2,017.40 3.00 2.40

note 1 : A. Daniels FICA = (118,500 -106,300)*7.65% + (106,300 +13,100 – 118,500)*1.45%

=>12,200 * 7.65% + 900*1.45% =>\$946.35.

note 2: B.Kingston = (118,500 – 111,100) *7.65% + (111,100 +16,900 – 118,500)*1.45%

=>\$703.85.

2.entry to record the payment of payroll:

 Wages and salaries expense 34,800 ………….To with holding taxes payable 3,480 …………..To FICA taxes payable 2,017.40 …………..To cash a/c 29,302.60

c.record the payroll tax expenses

 Payroll tax expense 2,022.80 …………To FICA tax payable 2,017.40 …………To Federal unemployment tax 3.00 …………To state unemployment tax 2.40

d.record the payment of payroll liabilities created.

 Withholding taxes payable 3,480 FICA taxes payable 2,017.40 Federal unemployment taxes payable 2.40 State unemployment taxes payable 3.00 …………To Cash a/c 5,502.80