Question
Below is a payroll sheet for Larkspur Import Company for the month of September 2017. The company is allowed a 1% unemployment compensation rate by
Below is a payroll sheet for Larkspur Import Company for the month of September 2017. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $118,500. In addition, 1.45% is charged both employer and employee for an employees wages in excess of $118,500 per employee.
Unemployment Tax | ||||||
Name | Earnings to Aug. 31 | September Earnings | Income Tax Withholding | FICA | State | Federal |
B.D. Williams | $6,800 | $900 | ||||
D. Raye | 6,300 | 800 | ||||
K. Baker | 7,500 | 1,000 | ||||
F. Lopez | 12,600 | 1,700 | ||||
A. Daniels | 108,700 | 12,100 | ||||
B. Kingston | 113,300 | 16,100 | ||||
Total |
Make the necessary entry to record the payment of the payroll. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation | Debit | Credit |
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