Continuing Payroll Problem B

Refer to the partially completed payroll register which you worked on at the end of Chapter 3. You will now determine the amount of income

tax to withhold for each employee, proceeding as follows:

1. In the appropriate columns of your payroll register, record the filing status for each employee using the information provided.

2. Record the payroll deductions for the SIMPLE plan that the employer has established for participating employees. All of the employees

are participating, and their weekly contributions are listed below. The tax deferral on these deductions applies only to the federal income

tax.

3. Record the amount of federal income taxes using the wage-bracket method and standard withholding.

4. Record the state income taxes on the gross weekly earnings for each employee. The rate is 3.07% for the state of Pennsylvania.

5. Record the local income taxes on the gross weekly earnings of each employee. The rate is 1.0% for the Chalfont Boro residents.

Time Card No.

12

13

21

22

31

32

33

51

99

Filing Status

S

S

MFJ

MFJ

S

MFJ

MFJ

S

MFJ

MFJ

No. of Withholding Allowances

N/A

N/A

N/A

NIA

N/A

N/A

N/A

N/A

N/A

N/A

1. The next part is at the end of chapter 4, page 4-77.
2. Part 4 of this assignment is at the end of chapter 5, page 5-59.
3. The last part is at the end of chapter 6, page 6-84.

Continuing Payroll Problem B

In this last phase of your work on the Continuing Fayroll Problem b, you will record the amounts withheld for group and health insurance

and calculate the net pay for each employee. Reter to the partially completed payr

Chapter 5, and proceed as follows

1. In the appropriate column of the payroll register, record the amount to be withheld for group lite insurance

contributes 85 each week toward the cost of group insurance coverage, with the

Company) who are not yet eligible for coverage under the company plai

ithheld for health

Record the net pay for each employee. The net pay for each

trom the total earnings

Each worker is to be paid by check. Assign check numbers commencing with No. 313

nns the payroll register, and prove the accuracy or the column totais

Un a separate sheet of paper

Prepare the journal entries as of January 12 to record the payroll and the payroll taxes for the week ending January 8. Credi

Salaries Pavable tor the total net dav

the following tax rates and bases: employer's FICA-OASDI, 6.2% on the first $137,700; employer's FICA--HI, 1.45%

on total earnings; FUTA, 0.6% on the first $7,000; and SUTA. 3.6890% on the first $10.000

Prepare the journal entry to record the payment of the payroll on January 14 when the paychecks are distributed to all

Your work on the Continuing Payroll Problem B is now completed, and you may be asked to submit your payroll register to your

instructor. The experience vou have gained in working on each of the succeeding phases of the Continuing Pavroll Problem will aid vou ir

undertaking the payroll work involved in Chapter 7. In the Comprehensive Payroll Project. you will be responsible