All employees are paid on a weekly basis and according to their W4 are all married and do not request any additional withholding (Use the tables that start on page 13 of the Pub 15-T that is posted under the Chapter 12 Module). Each employee has requested that 5% of their pay is withheld for the retirement plan. The employees with an hourly rate are the Sales reps and those earning a salary are the Office staff. The merit rating for SUTA is 4.8%. Prepare the necessary journal entries. 4. Employer's Liability for Payroll Taxes a. FICA 1. must match the employee's contribution (except the additional .9% medicare tax) b. Federal Unemployment Tax (FUTA) 1. 6.0% on first $7,000 (may receive credit for SUTA up to 5.4% ) c. State Unemployment Tax 1. Varies from state to state 2. May vary on business type and history- Merit Rating a. Musts 1. Federal Income Tax (FIT) W-4 Circular E 2. Federal Insurance Contribution Act (FICA) a. Old Age, Survivors, and Disability Insurance (OASDI) i. Social Security ii. 6.2% on first $160,200 (2023) b. Medicare i. 1.45% ii. Additional 0.9% on employee if in excess of $200,000 b. Wants 1. Insurance 2. Savings Plan 2020 Wage Bracket Method Tables for Manual Payroll Systems With Forms W-4 From 2020 or Later BIWEEKLY Payroll Period All employees are paid on a weekly basis and according to their W4 are all married and do not request any additional withholding (Use the tables that start on page 13 of the Pub 15-T that is posted under the Chapter 12 Module). Each employee has requested that 5% of their pay is withheld for the retirement plan. The employees with an hourly rate are the Sales reps and those earning a salary are the Office staff. The merit rating for SUTA is 4.8%. Prepare the necessary journal entries. 4. Employer's Liability for Payroll Taxes a. FICA 1. must match the employee's contribution (except the additional .9% medicare tax) b. Federal Unemployment Tax (FUTA) 1. 6.0% on first $7,000 (may receive credit for SUTA up to 5.4% ) c. State Unemployment Tax 1. Varies from state to state 2. May vary on business type and history- Merit Rating a. Musts 1. Federal Income Tax (FIT) W-4 Circular E 2. Federal Insurance Contribution Act (FICA) a. Old Age, Survivors, and Disability Insurance (OASDI) i. Social Security ii. 6.2% on first $160,200 (2023) b. Medicare i. 1.45% ii. Additional 0.9% on employee if in excess of $200,000 b. Wants 1. Insurance 2. Savings Plan 2020 Wage Bracket Method Tables for Manual Payroll Systems With Forms W-4 From 2020 or Later BIWEEKLY Payroll Period
