Question

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

​Employee:	​OASDI: 6.2​% on first $132,900 ​earned; Medicare: 1.45​% up to $200,000​, 2.35​% on earnings above $200,000.
​Employer:	​OASDI: 6.2​% on first $132,900 ​earned; Medicare: 1.45​%; ​FUTA: 0.6​% on first $7,000 ​earned; SUTA: 5.4​% on first $7,000 earned.

Robinson

works at College of

Boston

and is paid

$30

per hour for a​ 40-hour workweek and​ time-and-a-half for hours above 40.

For all payroll​ calculations, use the following tax rates and round amounts to the nearest​ cent: ​Employee: ​OASDI: 6.2​% on first $132,900 ​earned; Medicare: 1.45​% up to $200,000​, 2.35​% on earnings above $200,000. ​Employer: ​OASDI: 6.2​% on first $132,900 ​earned; Medicare: 1.45​%; ​FUTA: 0.6​% on first $7,000 ​earned; SUTA: 5.4​% on first $7,000 earned. For all payroll​ calculations, use the following tax rates and round amounts to the nearest​ cent: ​Employee: ​OASDI: 6.2​% on first $132,900 ​earned; Medicare: 1.45​% up to $200,000​, 2.35​% on earnings above $200,000. ​Employer: ​OASDI: 6.2​% on first $132,900 ​earned; Medicare: 1.45​%; ​FUTA: 0.6​% on first $7,000 ​earned; SUTA: 5.4​% on first $7,000 earned. For all payroll​ calculations, use the following tax rates and round amounts to the nearest​ cent: ​Employee: ​OASDI: 6.2​% on first $132,900 ​earned; Medicare: 1.45​% up to $200,000​, 2.35​% on earnings above $200,000. ​Employer: ​OASDI: 6.2​% on first $132,900 ​earned; Medicare: 1.45​%; ​FUTA: 0.6​% on first $7,000 ​earned; SUTA: 5.4​% on first $7,000 earned. For all payroll​ calculations, use the following tax rates and round amounts to the nearest​ cent: ​Employee: ​OASDI: 6.2​% on first $132,900 ​earned; Medicare: 1.45​% up to $200,000​, 2.35​% on earnings above $200,000. ​Employer: ​OASDI: 6.2​% on first $132,900 ​earned; Medicare: 1.45​%; ​FUTA: 0.6​% on first $7,000 ​earned; SUTA: 5.4​% on first $7,000 earned. For all payroll​ calculations, use the following tax rates and round amounts to the nearest​ cent: ​Employee: ​OASDI: 6.2​% on first $132,900 ​earned; Medicare: 1.45​% up to $200,000​, 2.35​% on earnings above $200,000. ​Employer: ​OASDI: 6.2​% on first $132,900 ​earned; Medicare: 1.45​%; ​FUTA: 0.6​% on first $7,000 ​earned; SUTA: 5.4​% on first $7,000 earned.

.

Compute

Robinson​'s

gross pay for working

58

hours during the first week of February.

2.

Robinson

is​ single, and her income tax withholding is

10%

of total pay.

Robinson​'s

only payroll deductions are payroll taxes. Compute

Robinson​'s

net​(take-home) pay for the week. Assume

Robinson​'s

earnings to date are less than the OASDI limit.

3.

Journalize the accrual of wages expense and the payments related to the employment of

Jenna

Robinson.

Answer 1

1					$
	Pay for 40 hours			(40*30)	1200
	Overtime pay for 18 hours			(18*30*1.5)	810
	Gross pay				2010
2					$	$
	Gross pay					2010
	Withholding deductions:
	Income tax withholding			(2010*10%)	201
	OASDI			(2010*6.2%)	124.62
	Medicare			(2010*1.45%)	29.15
	Total withholding deductions					354.77
	Net (take-home) pay					1655.24
3	Date	Account titles and explanation					Debit	Credit
	Feb.	Salaries expense					2010
		Income tax withholding payable						201
		OASDI payable						124.62
		Medicare payable						29.15
		Salaries payable						1655.24
		(Wages expense accrued)
	Feb.	Payroll tax expense					274.4
		OASDI payable			(2010*6.2%)			124.62
		Medicare payable			(2010*1.45%)			29.15
		FUTA payable			(2010*0.6%)			12.06
		SUTA payable			(2010*5.4%)			108.54
		(Payroll taxes accrued)
	Feb.	Salaries payable					1655.24
		Cash						1655.24
		(Salaries paid)
	Feb.	Income tax withholding payable					201
		OASDI payable			(124.62+124.62)		249.24
		Medicare payable			(29.15+29.15)		58.3
		FUTA payable					12.06
		SUTA payable					108.54
		Cash						629.1
		(Payroll taxes paid)