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3E13-9 (Payroll Tax Entries) Allison Hardware Company's payroll for November 2012 is summarized below. Payroll Factory Sales Administrative Total Wages Due $140,000 32,000 36,000 $208,000
3E13-9 (Payroll Tax Entries) Allison Hardware Company's payroll for November 2012 is summarized below. Payroll Factory Sales Administrative Total Wages Due $140,000 32,000 36,000 $208,000 Amount Subject to Payroll Taxes Unemployment Tax State FICA $140,000 32,000 36,000 $208,000 Federal $40,000 4,000 $44.000 $40,000 4,000 - $44,000 At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee's wages to $106,800 and 1.45% in excess of $106,800. Of the $208,000 wages subject to FICA tax, $20,000 of the sales wages is in excess of $106,800. Federal unemployment tax rate is 0.8% after credits. Income tax with- held amounts to $16,000 for factory, $7,000 for sales, and $6,000 for administrative. Instructions (a) Prepare a schedule showing the employer's total cost of wages for November by function. (b) Prepare the journal entries to record the factory, sales, and administrative payrolls including the amplover's parell
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