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During 2012 worthington worked for the company all year end bonus equal to 10% of his salary. Worthigtons federal income tax withheld during 2012 was
During 2012 worthington worked for the company all year end bonus equal to 10% of his salary. Worthigtons federal income tax withheld during 2012 was 840$ per month plus 926$ on his bonus check. State income taxes withheld came to 90$ per month, plus 40$ on bonus. The FICA tax withheld was 7.65% on the first 106,800 of annual earnings. Worthington authorized the following payroll deductions: charity fund contribution of 1% of total earnings and life insurance of 30$ per month. United incurred payroll tax expense on worthington for FICA tax of 7.65% of the first 106,800 in annual earnings. The company also paid state unemployment tax of 5.4 % and federal unemployment tax of 0.8% on the first $7,000 of annual earnings. In addition, United provides Worthington with health insurance at a cost of 110$ per month. During 2012, united paid $6,000 into worthington retirement plan. 1- Compute Worthigton's gross pay, payroll deductions and net pay for the full year 2012. Round all amounts to the nearest dollar 2- Compute united's total 2012 payroll expense for worth often 3-Make the journal entry to record the united expense for worthingtons total earnings for the year, his payroll deductions and net pay. Debit salary expense and bonus expense as appropriate. Credit liability accounts for the payroll deductions and cash for net pay
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