Compute employees gross pay and net pay- employee UNDER FICA cap

An employee earns $28 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 46 hours during the week. Assume that the FICA tax rate is 7.5% and the employees year-to-date earnings have not reached the FICA cap. Also assume that federal income tax of $200 was withheld.

1. Calculate the employees gross pay for the week.

2. Calculate the employees net pay for the week.

Calculate and record employers payroll taxes

According to a summary of the payroll of Kirby Co., $180,000 in earnings were subject to the 7.5% FICA tax. Also, $60,000 in earnings were subject to state and federal unemployment taxes.

3. Calculate the amount of the employer's payroll taxes, using the following rates: state unemployment, 4.3%; federal unemployment, 0.8%.

4. Which of the following describes the journal entry to record the accrual of the employers payroll taxes?

a. Increase Payroll Expense; Decrease Cash

b. Increase Payroll Tax Expense; Increase Salaries and Wages Payable

c. Increase Payroll Expense; Increase Retained Earnings

d. Increase Payroll Tax Expense; Decrease Cash

e. Increase Payroll Tax Expense; Increase Salaries and Wages Payable

Compute net pay employee over FICA cap

5. In 2016, Jane J receives a salary of $144,000 per year. The company pays employees twice monthly (24 pay periods per year). For the November 30 pay period, the following information is available for Jane:

Year to Date Earnings, $132,000

Federal income tax withheld, $1,800;

Social security tax rate, 6.0% on maximum of $118,500

Medicare tax rate, 1.5% on all earnings.

What is the net pay for Jane J?