Question

Ana an employee earns $33 per hour. She worked 53 hours the third week of January.

Federal Income Tax rate = 20%
State Income Tax rate = 5%
FICA rate SOC SEC = 6.2% and Medicare = 1.45%
FUTA rate = .8%
SUTA rate = 5.6%
Red Cross =$10
Pension = $25
PROVIDE CALCULATIOS FOR:
1. Gross pay (2points)
2. Net pay  (3 points)
3. Journalize the payroll for the employee (6 points)
4. Journalize the payroll tax expense (5 points)

Answer 1

Part 1

Normal wages (40*33)		1,320.00
Overtime wages (53-40 =13) (overtime rate = 33*150%=49.50) (13*49.50)		643.50
Gross pay		1,963.50

Part 2

Gross pay		1,963.50
Less: deductions
Federal Income Tax (1963.50*20%)	392.70
State Income Tax (1963.50*5%)	98.18
FICA Social (1963.50*6.2%)	121.74
FICA Medicare (1963.50*1.45%)	28.47
Red Cross	10.00
Pension	25.00	676.09
Net pay		1,287.41

Part 3

Event	Description	Debit	Credit
Answer 3	Salaries Expense	1,963.50
	Federal income taxes withheld payable		392.70
	State income taxes withheld payable		98.18
	FICA Social Security taxes withheld payable		121.74
	FICA Medicare Tax payable		28.47
	Red cross deductions payable		10.00
	Employee Pension deductions payable		25.00
	Salaries Payable		1,287.41
	To record salaries expense.

Part 4

Event	Description	Debit	Credit
Answer 4	Payroll taxes expense	275.88
	FICA Social Security taxes withheld payable		121.74
	FICA Medicare Tax payable		28.47
	Federal unemployment tax payable (1963.50*0.8%)		15.71
	State unemployment tax payable (1963.50*5.6%)		109.96
	To record employer's payroll taxes.