Prepare the Payroll Register. Fill in the blanks. Previous 6.20% Period FICA - 1
ID: 2540137 • Letter: P
Question
Prepare the Payroll Register. Fill in the blanks.
Previous
6.20%
Period
FICA -
1.45%
Year To
25%
5%
Social
FICA -
Date
Current
Federal
State
Security
Medicare
Health Ins.
Empl.
Gross
period
Tax
Tax
Tax
Tax
Premium
Total
Net
No.
Pay
Gross Pay
Withheld
Withheld
Withheld
Withheld
Withheld
Wthhldngs
Pay
#1
125,000
750
150
43.50
100
1,043.50
#2
119,600
250
50
14.50
100
439.30
#4
5,000
125
25
31.00
7.25
100
288.25
Note: Assume the Annual FICA cap on wages subject to the social security tax
is $120,000 per year. There is no Cap on wages subject to medicare tax.
Assume that for employers taxes, there is an annual cap of FUTA/SUTA taxes
of the first $7,000 earned per employee, per year.
A. Prepare the Payroll Register.
B. In the space below, prepare the general journal entry to pay the December 2 payroll. Assume there is a FICA-Social security wage limit as noted on the register. The FICA rates are noted on the register.
C: In the space below, record the employers share of the payroll taxes attributable to the December 2 payroll. Assume of FUTA rate of 0.8%, and a SUTA rate of 2% of the first $7,000 of employee wages per year.
NOTE: Only the wages of the last employee are subject to unemployment taxes
Previous
6.20%
Period
FICA -
1.45%
Year To
25%
5%
Social
FICA -
Date
Current
Federal
State
Security
Medicare
Health Ins.
Empl.
Gross
period
Tax
Tax
Tax
Tax
Premium
Total
Net
No.
Pay
Gross Pay
Withheld
Withheld
Withheld
Withheld
Withheld
Wthhldngs
Pay
#1
125,000
750
150
43.50
100
1,043.50
#2
119,600
250
50
14.50
100
439.30
#4
5,000
125
25
31.00
7.25
100
288.25
Note: Assume the Annual FICA cap on wages subject to the social security tax
is $120,000 per year. There is no Cap on wages subject to medicare tax.
Assume that for employers taxes, there is an annual cap of FUTA/SUTA taxes
of the first $7,000 earned per employee, per year.
Explanation / Answer
ans A Previous 6.20% Period FICA - 1.45% Year To 25% 5% Social FICA - Date Current Federal State Security Medicare Health Ins. Empl. Gross period Tax Tax Tax Tax Premium Total T Net No. Pay Gross Pay G Withheld Withheld Withheld Withheld Withheld Wthhldngs Pay G-T #1 125,000 3000 750 150 0 43.5 100 1,043.50 1,956.50 (150/5%) #2 119,600 1000 250 50 24.8 14.5 100 439.30 560.70 (50/5%) (400*6.2%) #4 5,000 500 125 25 31 7.25 100 288.25 211.75 (25/5%) Total 4500 1125 225 55.8 65.25 300 1771.05 2728.95 ans b Dr Cr Salaries & wages expenses 4500 Federal Tax payable 1125 State Taxes payable 225 Social Security taxes payable 55.8 Medicare Taxes payable 65.25 Health Insurance Premium payable 300 Salaries & Wages Payable 2728.95 (being salaries recorded for the month) ans c Payroll Tax expenses 135.05 Social Security taxes payable 55.8 Medicare Taxes payable 65.25 Federal Unemployment Taxes payable (500*.8%) 4 State Unemployment Taxes payable (500*2%) 10 (being payroll tax expenses recoreded)