Employees' earnings and taxes LO_2,3 A weekly payroil summary made from time tickets shows the fallowing data for Musketeer Manufacturing Company:

Overtime is payable at one-and-a-half times the regular rate of pay for an employee and is distributed to all jobs worked on during the period.

a. Determine the net pay of each employee. The income taxes withheld for each employee amount to 1 5% of the gross wages.

b. Prepare journal entries for the following:

1. Recording the payroll.

2. Paying the payroll.

3. Distributing the payroll. (Assume that overtime premium will be charged to all jobs worked on during the period.)

4. The employer's payroll taxes. (Assume that none of the employees has achieved the maximum wage bases for FICA and unemployment taxes.)

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Employee Classification Hourly Rate Hours Regular Overtime Chalmers, L. Direct $12 40 2 Frey, K. Direct 12 Price, L. Direct 15 Sato, R. Indirect 9 West, D. Indirect 18 4444 40 3 40 4 40 40