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Below is a payroll sheet for Otis Import Company for the month of September 2017. The company is allowed a 5.40% unemployment compensation rate by
Below is a payroll sheet for Otis Import Company for the month of September 2017. The | |||||||
company is allowed a | 5.40% | unemployment compensation rate by the state; the federal unemployment | |||||
tax rate is | 0.60% | and the maximum for both is | $9,000 | . Assume a | 12% | 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. | |||||
Name | Earnings to Aug 31 | September Earnings | Income Tax Withholding | F.I.C.A. | State U.C. | Federal U.C. | |
B.D. Williams | $8,600 | $900 | |||||
D. Raye | 8,100 | 750 | |||||
K. Baker | 9,800 | 1,200 | |||||
F. Lopez | 13,600 | 1,800 | |||||
A. Daniels | 109,000 | 12,600 | |||||
B. Kingston | 113,000 | 18,000 |
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Instructions: | |||||||||||||||||||||||||||||||
(a) Complete the payroll sheet and make the necessary entry to record the payment of the payroll
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