Question

In: Accounting

Assume during the quarter ending December 31 of the current year, Cox Security Systems had 13...

Assume during the quarter ending December 31 of the current year, Cox Security Systems had 13 weekly paydays and three monthly paydays. The names of the employees of Cox Security Systems and their regular salaries are shown in the following payroll register. Note that Hall and Short are paid monthly on the last payday, while all others are paid weekly.

Employee Name	Marital Status	No. of W/H Allowances	Regular Earnings
Hall, Michael	S	3	$5,000*
Short, Joy T.	S	0	2,750*
Abbott, Linda	S	1	520
Smith, Joseph	S	0	465
Tols, Sean M.	S	0	380
Gillespie, Michelle	S	0	350
Smart, Jennifer	S	5	575
White, Matthew J.	M	3	425

*Monthly

In addition to the regular salaries, the company pays an annual bonus based on the amount of earnings for the year. For the current year, the bonus amounts to 8% of the annual salary paid to each employee. The bonus is to be paid along with the regular salaries on December 28, but the amount of the bonus and the amount of the regular salary will be shown separately on each employee's earnings statement. Assume that all employees received their regular salary during the entire year.

The payroll register for the period ending December 28th is shown reflecting the following for each employee:

The wage-bracket method is used to withhold federal income tax from the regular salaries.

A flat 25% is withheld on the annual bonus.

Total salaries and bonuses are subject to a 2% state income tax and a 1% city income tax.

For Period Ending December 28, 20--

Employee Name		No. of	Earnings			Deductions
	Marital	W/H		(a)	(b)	(c) FICA		(d)	(e)	(f)	(g)
	Status	Allowances	Regular	Supp'l.	Total	OASDI	HI	FIT	SIT	CIT	Net Pay
Hall, Michael	S	3	$5,000.00*	$4,800.00	$9,800.00	$607.60	$142.10	$1,799.00	$196.00	$98.00	$6,957.30
Short, Joy T.	S	0	2,750.00*	2,640.00	5,390.00	334.18	78.16	1,003.00	107.80	53.90	3,812.96
Abbott, Linda	S	1	520.00	2,163.20	2,683.20	166.36	38.91	591.80	53.66	26.83	1,805.64
Smith, Joseph	S	0	465.00	1,934.40	2,399.40	148.76	34.79	537.60	47.99	23.99	1,606.27
Tols, Sean M.	S	0	380.00	1,580.80	1,960.80	121.57	28.43	437.20	39.22	19.61	1,314.77
Gillespie, Michelle	S	0	350.00	1,456.00	1,806.00	111.97	26.19	402.00	36.12	18.06	1,211.66
Smart, Jennifer	S	5	575.00	2,392.00	2,967.00	183.95	43.02	612.00	59.34	29.67	2,039.02
White, Matthew J.	M	3	425.00	1,768.00	2,193.00	135.97	31.80	445.00	43.86	21.93	1,514.44
Totals			$10,465.00	$18,734.40	$29,199.40	$1,810.36	$423.40	$5,827.60	$583.99	$291.99	$20,262.06

Complete the following form to show:

a. Total earnings paid during the quarter, including both the regular and the supplemental earnings.

b. Total amount of FICA taxes withheld during the quarter.

c. Total amount of federal income taxes withheld during the quarter.

d. Total amount of state income taxes withheld during the quarter.

e. Total amount of city income taxes withheld during the quarter.

f. Total net amount paid each employee during the quarter.

When computing withholding, round each amount to the nearest cent. If applicable, use rounded amount in subsequent computations. And use final rounded amount to determine the total.

the Wage-Bracket Method Tables.

Employee Name	(a)	Deductions
	Total	(b) FICA		(c)	(d)	(e)	(f)
	Earnings	OASDI	HI	FIT	SIT	CIT	Net Pay
Hall, Michael	$	$	$	$	$	$	$
Short, Joy T.
Abbott, Linda
Smith, Joseph
Tols, Sean M.
Gillespie, Michelle
Smart, Jennifer
White, Matthew J.
Totals	$	$	$	$	$	$	$

Expert Solution

	MARITAL STATUS	NO. OF W/H ALLOW.		EARNINGS			DEDUCTIONS
					( a)	( b )	( a )		( b )	( c )	( d )	( e )
EMPLOYEE NAME				REGULAR	SUPP'L.	TOTAL	FICA					NET
					Regular x 8% x 12 months or 52 weeks		OASDI @6.2%	HI @ 1.45%	FIT	SIT @ 2%	CIT @ 1%	PAY
Hall, Michael	S	3	(M)	15000.00	4800	19800.00	1227.60	287.10	4043.59	396	198.00	13647.708
Short, Joy T.	S	0	(M)	8250.00	2640.00	10890.00	675.18	157.91	2090.20	217.8	108.90	7640.015
Abbott, Linda	S	1		6760.00	2163.20	8923.20	553.24	129.39	1723.50	178.464	89.23	6249.3752
Smith, Joseph	S	0		6045.00	1934.40	7979.40	494.72	115.70	1407.26	159.588	79.79	5722.3339
Tols, Sean M.	S	0		4940.00	1580.80	6520.80	404.29	94.55	1075.66	130.416	65.21	4750.6748
Gillespie, Michelle	S	0		4550.00	1456.00	6006.00	372.37	87.09	958.86	120.12	60.06	4407.501
Smart, Jennifer	S	5		7475.00	2392.00	9867.00	611.75	143.07	1748.58	197.34	98.67	7067.5845
White, Matthew J.	M	3		5525.00	1768.00	7293.00	452.17	105.75	928.97	145.86	72.93	5587.3235
Totals				58545.00	13934.40	77279.40	4791.32	1120.55	13976.63	1545.588	772.79	55072.5159

Compute the employer's FICA taxes for the pay period ending December 23.

OASDI Taxes
OASDI taxable earnings	55072.52	HI taxable earnings	55072.52
OASDI taxes	4791.32	HI taxes	1120.55

(M) indicates monthly pay.

FIT is calculated using Percentage Method Tables for Income Tax Withholding 2018

Hall, Michael (Monthly)
Regular wage	$15,000.00
Withholding Single = 3 x $345.80	-$1,037.40
Taxable Income	$13,962.60
Tax = $2674.12 + 32%x (13962.6- 13433)		$2,843.59
Add: 25 % x 4800 Bonus		$1,200.00
FIT		$4,043.59

Short (Monthly)
Regular wage	$8,250.00
Withholding single = 0x $345.80	$0.00
Taxable Income	$8,250.00
Tax = 1174.12 +24% x (8250 -7183)		$1,430.20
Add: 25 % x 2640 Bonus		$660.00
FIT		$2,090.20

Abbott (weekly)
Regular wage	6760.00
Withholding single = 1x $79.80	-79.8
Taxable Income	6680.20
Tax = $371.12 + 22% x ($6680.20 - $3533)		1063.504
Add: 25 % x 2640 Bonus		660
FIT		1723.504

Smith
Regular wage	6045.00
Withholding single = 0x $79.80	0
Taxable Income	6045.00
Tax = $371.12 + 22% x ($6045.20 - $3533)		923.76
Add: 25 % x 1934 Bonus		483.5
FIT		1407.26

Tols
Regular wage	4940.00
Withholding single = 0x $79.80	0
Taxable Income	4940.00
Tax = $371.12 + 22% x ($4940 - $3533)		680.66
Add: 25 % x 1580 Bonus		395
FIT		1075.66

Gillespie
Regular wage	4550.00
Withholding single = 0x $79.80	0
Taxable Income	4550.00
Tax = $371.12 + 22% x ($4550 - $3533)		594.86
Add: 25 % x 1456 Bonus		364
FIT		958.86

Smart
Regular wage	7475.00
Withholding single = 5x $79.80	-399
Taxable Income	7076.00
Tax = $371.12 + 22% x ($7076 - $3533)		1150.58
Add: 25 % x 2392 Bonus		598
FIT		1748.58

White
Regular wage	5525.00
Withholding married =3x $79.80	-239.4
Taxable Income	5285.60
Tax = $158.70 + 12% ($5285.60 - $2550)		486.972
Add: 25 % x 1768 Bonus		442
FIT		928.972

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