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Exercise 9 - 2 1 A ( Algo ) Preparing payroll register and related entries LO P 5 Stark Company has five employees. Employees paid
Exercise A Algo Preparing payroll register and related entries LO P Stark Company has five employees. Employees paid by the hour earn $ per hour for the regular hour workweek and $ per hour beyond the hours per week. Hourly employees are paid every two weeks, but salaried employees are paid monthly on the last biweekly payday of each month. FICA Social Security taxes are of the first $ paid to each employee, and FICA Medicare taxes are of gross pay. FUTA taxes are and SUTA taxes are of the first $ paid to each employee. The company has a benefits plan that includes medical insurance, life insurance, and retirement funding for employees. Under this plan, employees must contribute of their gross income as a payroll withholding, which the company matches with double the amount. Following is the partially completed payroll register for the biweekly period ending August which is the last payday of August. Complete this payroll register by filling in all cells for the pay period ended August Prepare the August journal entry to: Record the accrued biweekly payroll and related liabilities for deductions. Record the employers cash payment of the net payroll of part b Record the employers payroll taxes i Including the contribution to the benefits plan. Pay all liabilities except for the net payroll in part c for this biweekly period.
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