A-3. The following is the monthly payroll for the last 3 months of the year for Smith's Sporting Goods Shop, 2 Boat Road, Lynn, MA 01945. The shop is a sole proprietorship owned and operated by Bill Smith. The EIN for Smith's Sporting Goods Shop is 28-9311893. The employees at Smith's are paid once each month on the last day of the month. Paula Bush is the only employee who has contributed the maximum into Social Security. None of the other employees will reach the Social Security wage base limit by the end of the year. Assume the rate for Social Security to be 6.2% with a wage base maximum of $127.200 and the rate for Medicare to be 1.45% on all earnings. Smith's is classified as a monthly depositor for Form 941 payroll tax deposit purposes. Your tasks are to do the following: 1. Compute the December OASDi tax for Paula Bush. 2. Journalize the entries to record the employer's payroll tax expense for each period in the general journal. SUTA rate: 5.7%; FUTA rate: 0.6%. 3. Journalize the payment of each tax liability in the general journal. 4. Complete Form 941 for the fourth quarter of the current year. OCTOBER Employee Paula Bush Joe Lapine Monthly Earnings $ 2,900 3,580 3,740 $10,220 YTD Earnings $120,750 39,450 44,200 $204,400 FICA OASDI Medicare Federal Income Tax $179.80 $ 42.05 $ 527.00 221.96 51.91 431.00 231.88 54.23 537.00 $633.64 $148.19 $1,495.00 OCTOBER Employee Paula Bush Joe Lapine Harley Shaw Monthly Earnings $ 2,900 3,580 3,740 $10,220 FICA YTD Earnings OASDI Medicare Medicare $120,750 $179.80 $ 42.05 39,450 221.96 51.91 44,200 231.88 54.23 $204,400 $633.64 Federal Income Tax $ 527.00 431.00 537.00 $1,495.00 NOVEMBER Employee Paula Bush Joe Lapine Harley Shaw Monthly Earnings $ 3,060 3,780 3,840 $10,680 YTD Earnings $123,810 43,230 48,040 $215,080 OASDI Medicare Federal Income Tax $189.72 $ 595.00 234.36 54. 470.00 238.08 562.00 $662.16 $1,627.00 W 00 onun 00 NU 00 - DECEMBER Employee Paula Bush Joe Lapine Harley Shaw Monthly Earnings YTD Earnings $ 4,240 $128,050 3,720 46,950 4,440 52,480 $12,400 $227,480 FICA OASDI Medicare Federal Income Tax $210.18 $ 61.48 $ 870.00 230.64 53.94 474.00 275.28 64.38 700.00 $716.10 $179.80 $2,044.00 A-3. The following is the monthly payroll for the last 3 months of the year for Smith's Sporting Goods Shop, 2 Boat Road, Lynn, MA 01945. The shop is a sole proprietorship owned and operated by Bill Smith. The EIN for Smith's Sporting Goods Shop is 28-9311893. The employees at Smith's are paid once each month on the last day of the month. Paula Bush is the only employee who has contributed the maximum into Social Security. None of the other employees will reach the Social Security wage base limit by the end of the year. Assume the rate for Social Security to be 6.2% with a wage base maximum of $127.200 and the rate for Medicare to be 1.45% on all earnings. Smith's is classified as a monthly depositor for Form 941 payroll tax deposit purposes. Your tasks are to do the following: 1. Compute the December OASDi tax for Paula Bush. 2. Journalize the entries to record the employer's payroll tax expense for each period in the general journal. SUTA rate: 5.7%; FUTA rate: 0.6%. 3. Journalize the payment of each tax liability in the general journal. 4. Complete Form 941 for the fourth quarter of the current year. OCTOBER Employee Paula Bush Joe Lapine Monthly Earnings $ 2,900 3,580 3,740 $10,220 YTD Earnings $120,750 39,450 44,200 $204,400 FICA OASDI Medicare Federal Income Tax $179.80 $ 42.05 $ 527.00 221.96 51.91 431.00 231.88 54.23 537.00 $633.64 $148.19 $1,495.00 OCTOBER Employee Paula Bush Joe Lapine Harley Shaw Monthly Earnings $ 2,900 3,580 3,740 $10,220 FICA YTD Earnings OASDI Medicare Medicare $120,750 $179.80 $ 42.05 39,450 221.96 51.91 44,200 231.88 54.23 $204,400 $633.64 Federal Income Tax $ 527.00 431.00 537.00 $1,495.00 NOVEMBER Employee Paula Bush Joe Lapine Harley Shaw Monthly Earnings $ 3,060 3,780 3,840 $10,680 YTD Earnings $123,810 43,230 48,040 $215,080 OASDI Medicare Federal Income Tax $189.72 $ 595.00 234.36 54. 470.00 238.08 562.00 $662.16 $1,627.00 W 00 onun 00 NU 00 - DECEMBER Employee Paula Bush Joe Lapine Harley Shaw Monthly Earnings YTD Earnings $ 4,240 $128,050 3,720 46,950 4,440 52,480 $12,400 $227,480 FICA OASDI Medicare Federal Income Tax $210.18 $ 61.48 $ 870.00 230.64 53.94 474.00 275.28 64.38 700.00 $716.10 $179.80 $2,044.00
