Question

Jordan Hubert works for ABC all year and earns a monlty salary of $12,800. Thre is no overtime pay. Jordans income tax withholding rate is 10% of gross pay. In addition to payroll taxes, Jordan elects to contribute 1% monthly to united way. ABC also deducts $175 montly for co-payment of the health insurance premium. As of september 30 , Jordan had 115,200 of cumulative earnings

For all payroll calculations, use the following tax rates and round amounts to the nearest cent

Employee; OASDI 6.2% on first 118,500 ; medicare 1.45% up to $200,000 , 2.35% on earnings above $200,000

Employee; OASDI 6.2% on first 118,500 earned;  medicare 1.45% on all earnings ; FUTA 0.6% on first 7,000 earned ; SUTA 5.4% On all first 7,000 earned

requirment 1 . Compute jordans net pay for october

requirment 2 journalize the accrual of salaries expenese and the payment related to the employment of jordan hubert... begin with the entry to accure salaries expensive and payroll withholdings for jordan

now record the entry to record the payment wages to jordan hubert

Answer 1

1	Gross pay	12800
	Less
	Federal withholding	1280	(12800*10%)
	Contribution to united way	128	(12800*1%)
	Health insurance premium	175
	FICA SS	204.6	(118500-115200)*6.2%
	FICA medicare	185.6	(12800*1.45%)
	Net pay	10826.8
	Jornal	Debit	Credit
	Salaries expense	12800
	Income tax witheld		1280
	United way payable		128
	Insurance premium payable		175
	Fica taxes payable		204.6
	Fica medicare payable		185.6
	Salaries payable		10826.8
	FICA SS	204.6	(118500-115200)*6.2%
	FICA medicare	185.6	(12800*1.45%)
	FUTA	0
	SUTA	0
	Total ER taxes	390.2
	Payroll expense	390.2
	FICA taxes payable		204.6
	FiCA medicare payable		185.6

Payment of wages

Salaries payable Debit 10826.8

Cash Credit 10826.8