Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

d. Prepare the journal entry to record the payroll tax expense and fringe benefit expense for Webber Packing Company for the week. (Round your answers

image text in transcribed

d. Prepare the journal entry to record the payroll tax expense and fringe benefit expense for Webber Packing Company for the week. (Round your answers to 2 decimal places.)

Required information [The following information applies to the questions displayed below.] The following information is available for the employees of Webber Packing Company for the first week of January Year 1: 1. Kayla earns $26 per hour and 172 times her regular rate for hours over 38 per week. Kayla worked 46 hours the first week in January, Kayla's federal income tax withholding is equal to 11 percent of her gross pay. Webber pays medical insurance of $95 per week for Kayla and contributes $46 per week to a retirement plan for her. 2. Paula earns a weekly salary of $1,200. Paula's federal income tax withholding is 18 percent of her gross pay. Webber pays medical insurance of $130 per week for Paula and contributes $100 per week to a retirement plan for her. 3. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $95 per week for Paula. Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent of total salaries. The state unemployment tax rate is 5.4 percent and the federal unemployment tax rate is 0.6 percent of the first $7,000 of salary for each employee

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Decision Makers

Authors: Eddie McLaney, Peter Atrill

4th Edition

9780273688471

More Books

Students also viewed these Accounting questions

Question

Which approach is least fitting for the job? Explain.

Answered: 1 week ago

Question

How is the compensation for sales representatives determined?

Answered: 1 week ago