Use the following payroll data for John’s Automotive for the first quarter of the current year. Employer tax rates are social security, 6.2%; Medicare, 1.45%; federal unemployment, 0.8%; and state unemployment, 5.4%.

Instructions:

1. Calculate the liability for employee federal income tax, social security tax, and Medicare tax for the biweekly pay period ended March 28. Include both the employees’ tax withheld and the employer liability for social security and Medicare taxes. Record the payment of federal income tax withholding, social security tax, and Medicare tax of cash payments journal. The payment is made on April 3 using Check No. 492 as the source document.

2. Calculate the federal unemployment tax liability for the first quarter. Record the payment on page 8 of a cash payments journal. The payment is made on April 30 using Check No. 515 as the source document.

3. Calculate the state unemployment tax liability for the first quarter. Record the payment on page 8 of a cash payments journal. The payment is made on April 30 using Check No. 516 as the source document.

Transcribed Image Text:

Period Biweekly Period Ended March 28 First Quarter Total Earnings Social Security Tax Withheld Medicare Tax Federal Income Withheld Tax Withheld $ 7,742.00 46,452.00 $480.00 $112.26 $911.00 -