Question

In: Accounting

Marlene Grady and Pauline Monroe are partners engaged in operating The G&M Doll Shop, which has...

Marlene Grady and Pauline Monroe are partners engaged in operating The G&M Doll Shop, which has employed the following persons since the beginning of the year: V. Hoffman (general office worker) $2,300 per month A. Drugan (saleswoman) $24,000 per year G. Beiter (stock clerk) $177 per week S. Egan (deliveryman) $300 per week B. Lin (cleaning and maintenance, part-time) $165 per week Grady and Monroe are each paid a weekly salary allowance of $1,850. The doll shop is located in a state that requires unemployment compensation contributions of employers of one or more individuals. The company is subject to state contributions at a rate of 3.1% for wages not in excess of $8,100. Compute each of the following amounts based upon the 41st weekly payroll period for the week ending October 12, 2018. Round your intermediate calculations and final answers to the nearest cent. Use rounded answers in subsequent computations. If an amount is zero, enter "0". a. Amount of FICA taxes (OASDI and HI) to be withheld from the earnings of each person. Taxable Earnings OASDI HI M. Grady $1,850.00 $ $ P. Monroe 1,850.00 V. Hoffman 530.77 A. Drugan 461.54 G. Beiter 177.00 S. Egan 300.00 B. Lin 165.00 b. Amount of the employer's FICA taxes for the weekly payroll. Taxable payroll $ OASDI $ HI $ c. Amount of state unemployment contributions for the weekly payroll. $ d. Amount of the net FUTA tax on the payroll. $ e. Total amount of the employer's payroll taxes for the weekly payroll. $

Solutions

Expert Solution

a.Amount of FICA taxes (OASDI and HI) to be withheld from the earnings of each person .Mr Grady and P Monroe are not taxed by FICA due to them being partners.

Particulars                       Taxable earnings                        OASDI(6.2%)                  HI(1.45%)

V Hoffman                         530.77                                       32.91                             7.7

A Drugan                          461.54                                        28.62                            6.69

G Beiter                            177.00                                       10.97                             2.57

S Egan                              300.00                                       18.6                              4.35

B Lin                                 165.00                                        10.23                            2.39

Total                                                                                   101.33                          23.9

b.Amount of the employer 's FICA taxes for the weekly payroll

Total OASDI is $101.33 and Total HI is $ 23.9

Total FICA =$101.33+$23.9 =$125.23

c.Amount of state unemployment contributions for the weekly payroll

1 $8100 is the SUTA limit

G Beiter and B Lin Total wages are below:

$8100 and are the only employee still paying state umemployment contributions.

2.$177 + $165 =$342 SUTA is 3.1 %

                     =0.031 * $342

                     =$10.602

d) Amount of the net FUTA tax on the payroll :

1.All employees except B Lin are past the $7000 FUTA limit

2.FUTA is .8% =.8%*$165

                      =.008*$165

                      = $1.32

e) Total Amount of the employees payroll taxes for the weekly payroll

1.Grand Total for weekly taxes is FICA+SUTA+FUTA

                                                =$125.23+$10.602+$1.32

                                                =$137.15

                                              


Related Solutions

The Monroe Partnership has two partners – Amy and Claire. Each partner has a 50% interest...
The Monroe Partnership has two partners – Amy and Claire. Each partner has a 50% interest in the partnership. Amy also owns 80% of the stock (80 shares) of the Zena Corporation. The other 20% (20 shares) of Zena are owned by Wendy who is not related to Amy or Claire. Based on these facts, the Monroe partnership will be deemed to own _____________ shares of Zena and Claire will be deemed to own ___________ shares of Zena. a. 80...
Melinda and Melissa are partners in a clothing design shop trading as M&M Boutique. They share...
Melinda and Melissa are partners in a clothing design shop trading as M&M Boutique. They share profits and losses in the ration 2:1. On 30 June 2017, the statement of financial position was as follows: M&M Boutique Statement of financial position as at 30 June 2017 N$ N$ Asse ts Non-Current Assets Land & Building 300,000.00 Vehic les 60,000.00 Goodwill 90,000.00 Furniture 30,000.00 - 480,000.00 Current Assets Inventories 144,000.00 Trade Receivable 186,000.00 Bank 27,000.00 357,000.00 357,000.00 Total Assets 837,000.00 Equity...
10. A transmission line operating at 500Mrad/s has L=0.5µH/m, C=32pF/m, G=100μmho/m and R=25Ω/m. (a) Calculate values...
10. A transmission line operating at 500Mrad/s has L=0.5µH/m, C=32pF/m, G=100μmho/m and R=25Ω/m. (a) Calculate values for γ, α, β, v, λand Z0. (b) What distance down the line can a voltage wave travel before it is reduced to 10 percent of its initial amplitude? (c) What distance must it travel to undergo a 90o phase shift?
The following is the information extracted from M/s. Jamil LLC, which is run by partners A,...
The following is the information extracted from M/s. Jamil LLC, which is run by partners A, B and C and sharing profits 3:2:1 as on 31.3.2020. Name of Accounts OMR Name of Accounts OMR Cash 63,000 Bank Loan 56,000 Sundry Debtors 98,000 Bonds 70,000 Stock 35,000 Bills Payable 112,000 Machinery 56,000 Sundry Creditors 140,000 Land 98,000 Bank Overdraft 35,000 Furniture 35,000 General Reserve 70,000 Premises 56,000 Profit & Loss A/C 35,000 Building 140,000 A Capital Account 84,000 Plant 84,000 B...
Luisa Crimini has been operating a beauty shop in a university town for the past 10...
Luisa Crimini has been operating a beauty shop in a university town for the past 10 years. Recently, Luisa rented space next to her shop and opened a spray-tanning salon. She anticipated that the costs for the spray-tanning service would primarily be fixed but found that spray-tanning salon costs increased with the number of appointments. Costs for this service over the past eight months are as follows: Spray-Tanning Appointments Total Cost January 1,600               $ 1,754 February 2,000              2,140 March 3,500...
Repair Shop has a monthly target operating income of 34000 . Variable expenses are 80 ​%...
Repair Shop has a monthly target operating income of 34000 . Variable expenses are 80 ​% of sales and monthly fixed expenses are 10300 . Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Repair​ Shop's margin of safety as a percentage of target sales. 3. What is Repair​ Shop's operating leverage factor at the target level of operating​ income? 4. Assume that the repair shop reaches its target. By...
High-Low Method Luisa Crimini has been operating a beauty shop in a college town for the...
High-Low Method Luisa Crimini has been operating a beauty shop in a college town for the past 10 years. Recently, Luisa rented space next to her shop and opened a tanning salon. She anticipated that the costs for the tanning service would primarily be fixed, but found that tanning salon costs increased with the number of appointments. Costs for this service over the past 8 months are as follows: Month Tanning Appointments Total Cost January 1,600 $1,754 February 2,000 2,140...
Regina Repair Shop has a monthly target operating income of $32,000. Variable expenses are 75% of...
Regina Repair Shop has a monthly target operating income of $32,000. Variable expenses are 75% of sales and monthly fixed expenses are $10,000. Requirements Compute the monthly margin of safety in dollars if the shop achieves its income goal. Express Regina Repair Shop’s margin of safety as a percentage of target sales. What is Regina Repair Shop’s operating leverage factor at the target level of operating income? Assume that the repair shop reaches its target. By what percentage will Regina...
High-Low Method Luisa Crimini has been operating a beauty shop in a college town for the...
High-Low Method Luisa Crimini has been operating a beauty shop in a college town for the past 10 years. Recently, Luisa rented space next to her shop and opened a tanning salon. She anticipated that the costs for the tanning service would primarily be fixed, but found that tanning salon costs increased with the number of appointments. Costs for this service over the past 8 months are as follows: Tanning Month Appointments Total Cost January 800 $1,758 February 2,100 $2,150...
High-Low Method Luisa Crimini has been operating a beauty shop in a college town for the...
High-Low Method Luisa Crimini has been operating a beauty shop in a college town for the past 10 years. Recently, Luisa rented space next to her shop and opened a tanning salon. She anticipated that the costs for the tanning service would primarily be fixed, but found that tanning salon costs increased with the number of appointments. Costs for this service over the past 8 months are as follows: Tanning Month Appointments Total Cost January 600 $1,750 February 2,000 $2,130...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT