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In: Accounting
ACC Tax ch 13 Lee Financial Services pays employees monthly. Payroll information is listed below for...
ACC Tax ch 13
Lee Financial Services pays employees monthly. Payroll information is listed below for January 2016, the first month of Lee's fiscal year. Assume that none of the employees exceeded any relevant wage base. Salaries $136,394 Federal income taxes to be withheld 6,021 Federal unemployment tax rate 0.60% State unemployment tax rate (after FUTA deduction) 2.5% Social Security tax rate 6.20% Medicare tax rate 1.45% What is the net pay (credit to cash) used to record the employee’s paychecks?
Solutions
Expert Solution
| Tax | Amount withheld from employees' gross pay | Amount paid by employer |
| Federal income taxes to be withheld | $ 6,021.00 | |
| Social Security (6.2%) | $ 8,456.43 | $ 8,456.43 |
| Medicare (1.45%) tax rate | $ 1,977.71 | $ 1,977.71 |
| Federal unemployment tax | $ 818.36 | |
| State unemployment tax | $ 3,409.85 | |
| Total | $ 16,455.14 | $ 14,662.36 |
| Employees salaries | $ 1,36,394.00 | |
| Less: Amount withheld from employees' gross pay | $ 16,455.14 | |
| Net Pay(Credit to cash) | 1,19,938.86 | |
ekkarill92 answered 1 year agoRelated Solutions
Lee Financial Services pays employees monthly. Payroll information is listed below for January 2016, the first...
Lee Financial Services pays employees monthly. Payroll
information is listed below for January 2016, the first month of
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relevant wage base.
Salaries
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Federal income taxes to be withheld
6,670
Federal unemployment tax rate
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State unemployment tax rate (after FUTA deduction)
3.6%
Social Security tax rate
6.20%
Medicare tax rate
1.45%
What is the net pay (credit to cash) used to record the
employee’s paychecks?
Lee Financial Services pays employees monthly. Payroll information is listed below for January 2016, the first...
Lee Financial Services pays employees monthly. Payroll
information is listed below for January 2016, the first month of
Lee's fiscal year. Assume that none of the employees exceeded any
relevant wage base.
Salaries
$142,828
Federal income taxes to be withheld
5,517
Federal unemployment tax rate
0.60%
State unemployment tax rate (after FUTA deduction)
3.3%
Social Security tax rate
6.20%
Medicare tax rate
1.45%
What is the total payroll tax expense related to the employee’s
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Required:
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4,500
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Calculate the following ratios in the table below for
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Prepaid expenses
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——————————————————————————————————————————
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