Question

Prepare the Payroll Register. Fill in the blanks.

	Previous				6.20%
	Period				FICA -	1.45%
	Year To		25%	5%	Social	FICA -
	Date	Current	Federal	State	Security	Medicare	Health Ins.
Empl.	Gross	period	Tax	Tax	Tax	Tax	Premium	Total	Net
No.	Pay	Gross Pay	Withheld	Withheld	Withheld	Withheld	Withheld	Wthhldngs	Pay
#1	125,000		750	150		43.50	100	1,043.50
#2	119,600		250	50		14.50	100	439.30
#4	5,000		125	25	31.00	7.25	100	288.25
Note: Assume the Annual FICA cap on wages subject to the social security tax
is $120,000 per year. There is no Cap on wages subject to medicare tax.
Assume that for employers taxes, there is an annual cap of FUTA/SUTA taxes
of the first $7,000 earned per employee, per year.

A. Prepare the Payroll Register.

B. In the space below, prepare the general journal entry to pay the December 2 payroll. Assume there is a FICA-Social security wage limit as noted on the register. The FICA rates are noted on the register.

C: In the space below, record the employers share of the payroll taxes attributable to the December 2 payroll. Assume of FUTA rate of 0.8%, and a SUTA rate of 2% of the first $7,000 of employee wages per year.

NOTE: Only the wages of the last employee are subject to unemployment taxes

Answer 1

ans A
Previous					6.20%
	Period				FICA -	1.45%
	Year To		25%	5%	Social	FICA -
	Date	Current	Federal	State	Security	Medicare	Health Ins.
Empl.	Gross	period	Tax	Tax	Tax	Tax	Premium	Total T	Net
No.	Pay	Gross Pay G	Withheld	Withheld	Withheld	Withheld	Withheld	Wthhldngs	Pay G-T
#1	125,000	3000	750	150	0	43.5	100	1,043.50	1,956.50
		(150/5%)
#2	119,600	1000	250	50	24.8	14.5	100	439.30	560.70
		(50/5%)			(400*6.2%)
#4	5,000	500	125	25	31	7.25	100	288.25	211.75
		(25/5%)
Total		4500	1125	225	55.8	65.25	300	1771.05	2728.95
ans b	Dr	Cr
Salaries & wages expenses	4500
Federal Tax payable		1125
State Taxes payable		225
Social Security taxes payable		55.8
Medicare Taxes payable		65.25
Health Insurance Premium payable		300
Salaries & Wages Payable		2728.95
(being salaries recorded for the month)
ans c
Payroll Tax expenses	135.05
Social Security taxes payable		55.8
Medicare Taxes payable		65.25
Federal Unemployment Taxes payable (500*.8%)		4
State Unemployment Taxes payable (500*2%)		10
(being payroll tax expenses recoreded)