CHAPTER S Paying the Paynoll, Depositing Payroll Taxes, and Filig the Required Quarterty and AnmuxFors 307 Your tasks are to do the following 1. Journalize the entries to record the employers payroll tax expense for each pay period in the general journal. 2. Journalize entries for the payment of each tax liability in the gencral journal. John Andrews, the accountant for White Conpasy, must complete Form 941 for the first quarter of the current year. John gathered the needed data as presented in Problem 8A-1. Suddenly called away to an urgent budget meeting, John requested that you assist him by preparing the Form 941 for Check Fae the first quarter. Please note that the difference in the tax liability, a few cents, should be adjusted on line 7; this difference is due to the rounding of 8A2 L012 (50 min) 941 for Check Figure iotal Lability fr Gurter S7,98.68 er 57,983.68 FICA tax amounts. 01,2 (60 min) The following is the monthly payroll for the last three months of the year for Allen's Sporting Goods Shop, 2 Boat Road, Lynn, Massachusetts 01945. The shop is a sole proprietorship owned and operated by Bill Allen The EIN for Allen's Sporting Goods Shop is 28-9311893. 84-3 The employees at Allen's are paid once each month on the last day of the month. Karen Becker 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 $117,000, and the rate for Medicare to be 1.45% on all earnings. Allen's is classified as a monthly depositor for Form 941 payroll tax deposit Chock Figure Dec. 31 Payroll Tax Expense $792.57 Your tasks are to do the following 1. Compute the December OASDI tax for Karen Becker 2. Journalize the entries to record the employer's payroll tax expense foe each period in the general lournal. 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 FICA Honthly Earnings YTD Earnings QASDI Medicare Federal Income Tax Emplayee Karen Becker Beth Orange Sean Peters 11 2,800 ,420 3,860 510,080 39,650 3.950 $196,100 12.500 $173.60 40.60 212.04 49.59 239.32 55.97 $624.96 $146.16 526.00 422.00 532.00 1,480.00 NOVEMBER FICA EmployeeMonthly Earnings Karen Becker Beth Orange Sean Peters YTD Earnings OASDI 115,360 $177.32 $41.47 43,530 240.56 56.26 47,670 230.64 53.94 5206.560 $648.52 $151.7 Medicare Federal Income Tax s 2,860 3,880 3,720 $10,460 597.00 463.00 555.00 1,615.00
