1. Compute gross pay, payroll deductions, and net pay during . 2. What was the bank's total cost of employing in ? 3. Prepare the bank's summary journal entries to record a. total earnings for the year, her payroll deductions, and her net pay. Debit Salary Expense and Executive Bonus Compensation Expense as appropriate. Credit-appropriate liability accounts for the payroll deductions and Cash for net pay. b. Employer payroll taxes for . Explanations are not required. Round all amounts to the nearest dollar.

During 2018, she worked for the bank all year a t$5700 a monthly salary. She also earned a year-end bonus equal to 10% of her annual salary. Worthington's federal income tax withheld during 2018 was $890 per month, plus $2480 on her bonus check. State income tax withheld came to $80 per month, plus 160 on the bonus. The FICA rate is 7.65 %. authorized the following payroll deductions: United Way contribution of 1% of total earnings and life insurance of $5 per month. Crossroads Bank incurred payroll tax expenses on Worthington for FICA tax, SUTA tax, and FUTA tax. Use a 5.4% SUTA tax rate, and a 0.6% FUTA tax rate. The state unemployment wage base in the state where Worthington works is $39,000.