Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,500
Question:
Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,500 each week.
Additional tax information includes:
FICA tax—OASDI..................................................................... 6.2% on first $127,200
FICA tax—HI............................................................................ 1.45% on total pay
Federal income tax..................................................................... $232.00 per pay
State income tax........................................................................ 22% of the federal income tax withholding
Federal unemployment tax......................................................... 0.6% on first $7,000
State unemployment tax............................................................ 0.05% on first $14,000
Additional payroll deductions include:
401(k) plan................................................................................ 3% per pay
Child support garnishment........................................................ $100 per pay
Health insurance premium......................................................... $95 per pay
Record the payroll entry and payroll tax entry for the pay of the week ended June 1 (his year-to-date pay is $31,500).
Step by Step Answer: