CH 8 PROBLEMS: SET A : P8A-1 & P8A-3 Set A BA-1. The following is the monthly payroll of Andersen Company, owned by Donald Andersen. Employees are paid on the last day of each month. JANUARY Employee Sam Fish Joy Bryant Ariana Hess Monthly Earnings $1,900 3.150 3,760 58,810 YTD Earnings $1,900 3,150 3.760 $8,810 FICA OASDI Medicare Federal Income Tax $117.80 $ 27.55 $ 264.00 195.30 45.68 351.00 233.12 54.52 498.00 5546.22 $127.75 $1,113.00 FEBRUARY Employee Sam Fish Joy Bryant Artaa Hess Monthly Earnings $2,220 3,500 3,780 $9,500 YTD Earnings 5 4,120 6,650 7,540 $18,310 FICA OASDI Medicare $137.64 5 32.19 217.00 50.75 234.36 54.81 $589.00 $137.75 Federal Income Tax 5 308.00 321.00 430.00 $1.059.00 MARCH FICA Employee Sam Fish Joy Bryant Ariana Hess Monthly Earnings $2,175 2,425 YTD Earnings 56,295 9,075 11,600 526,970 OASDI $134.85 150.35 251.72 $536.92 Medicare $31.54 35.16 58.87 $125.57 Federal Income Tax $ 590.00 568.00 537.00 $1,695.00 4,060 58,660 Andersen Company is located at 2 Square Street, Marblehead, MA 01945. Its EIN is 29-3458822. The FICA tax rate for Social Security is 6.2% on up to $127,200 in carnings during the year, and Medicare is 1.45% on all earnings. The SUTA tax rate is 5.7% on the first $7,000. The FUTA tax rate is 0.6% on the first $7,000 of earnings. Andersen Company is classified as a monthly depositor for Form 941 taxes. Your tasks are to do the following: 1. Journalize the entries to record the employer's payroll tax expense for each pay period in the general journal. 2. Journalize entries for the payment of each tax liability in the general journal. 44-3. sole proprietting Goods Shly payrolls ership own hop. 2 Boat Re the last 3 months SLIVISHW#7 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 Bal Smith. The FIN 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 was base limit by the end of the year. Assume the rate for Social Security to be with a wage base maximum of 5127,200 and the rate for Medicare to be 145 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 employee's paroll tax expense for each period in the general journal. SUTA rate: 57%;FUTA rate: 0.6%. 3. Journalize the payment of each tas liability in the general journal. 4. Complete Form 941 for the fourth quarter of the current year. OCTOBER ah Employee Paula Bush Joe Lapine Harley Shaw Monthly Earnings $ 2,900 3.580 3,740 $10,220 FICA YTD Earnings OASDI Medicare Federal Income Tax $120,750 5179.80 $120750 $42.05 $ 527.00 39,450 221.96 51.91 431.00 44,200 231.88 54.23 537.00 $204.400 $633.56 $148.19 $1,495.00 Od 216 NOVEMBER Employee Paula Bush Joe Lapine Harley Shaw Monthly Earnings $ 3,050 3,780 3,840 $10,680 YTD Earnings $123,810 43,230 48,040 $215,080 FICA OASDI Medicare $189.72 544.37 234.36 54.81 238.08 55.68 $662.16 $154.86 Federal Income Tax $ 595.00 470.00 562.00 $1,627.00 DECEMBER TICA Employee Paula Bush Joe Lapine Harley Shaw Monthly Earnings $ 4,240 3,720 4,440 $12,400 YTD Earnings $128,050 46,950 52,480 $227,480 QASDI $210.18 230.54 275.28 5716.10 Medicare Federal Income Tax S 61.48 $ 870.00 53.94 474.00 64.38 700.00 $179.80 $2,044.00
