E F H Quickly convert a range of cells to a table with its own style. K B D EMPLOYER'S PAYROLL TAXES P o R 1 TOTAL SCORE o 2 3 4 5 1. 2. 3. 4. The employer's payroll taxes typically include four items: Employer's contribution to employee's Social Security (matching employee's contribution) Employer's contribution to employee's Medicare (matching employee's contribution) Employer's contribution to State Unemployment (SUTA) Employer's contribution to Federal Unemployment (FUTA) Note: Unemployment taxes are paid ONLY by employers, NOT employees. 6 7 8 9 10 Choose Employee (1-10) 1 11 12 13 1. Sally Thomas earns $22.00 per hour. This week, this employee worked 40 hours. Compute the gross pay. 14 15 16 Gross Pay = 0 17 18 19 2. COMPUTING EMPLOYER'S PAYROLL TAXES (4 ITEMS) 20 21 a. Social Security Tax = 6% of wages earned. When the employee hits $100,000 for the year, the employer stops taking out Social Security Compute employer's contribution to employee's Social Security. 0 22 23 24 b. Medicare Tax = 1.5% of all wages earned by the employee. Compute employer's contribution to employee's Medicare. 0 25 26 27 C. State Unemployment Tax paid by employer is 5.4% of employee's wages earned this year (maximum $7,000 of wages) PAYROLL TAX EXPENSE 3.20 A B D E F G H M N P Q R Gross Pay = 0 15 16 17 18 19 20 21 2. COMPUTING EMPLOYER'S PAYROLL TAXES (4 ITEMS) a. Social Security Tax = 6% of wages earned. When the employee hits $100,000 for the year, the employer stops taking out Social Security Compute employer's contribution to employee's Social Security. 0 22 23 24 b. Medicare Tax = 1.5% of all wages earned by the employee. Compute employer's contribution to employee's Medicare. 0 25 26 7 C. State Unemployment Tax paid by employer is 5.4% of employee's wages earned this year (maximum $7,000 of wages) Compute employer's contribution to State Unemployment. 0 (Note: 5.4% is .054) 8 9 0 d. Federal Unemployment Tax paid by employer is.8% of employee's wages earned this year (maximum $7,000 of wages) Compute employer's contribution to Federal Unemployment. 0 (Note: .8% is .008) 1 2 MAKE THE ENTRY TO RECORD THE EMPLOYER'S PAYROLL TAXES: 3 4 5 Item 2a 5 Item 2b Payroll Tax Expense Social Security Payable Medicare Payable State Unemployment Tax Payable Federal Unemployment Tax Payable 0 Compute total of 2a through 2d 0 0 0 0 Item 2c Item 2d PAYROLL TAX EXPENSE 3:21 PM