Question
For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: OASDI: 6.2% on first 0$117,000 earned; Medicare: 1.45%
For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: OASDI: 6.2% on first 0$117,000 earned; Medicare: 1.45% up to $$200,000, 2.35% on earnings above$200,000. Employer: OASDI:6.2% on first$117,000 earned; Medicare: 1.45% on all earnings; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned
Sollenberger
manages a
Dairy House
drive-in. His straight-time pay is
$ 8
per hour, with time-and-a-half for hours in excess of 40 per week.
Sollenberger
payroll deductions include withheld income tax of
2020%,
FICA tax, and a weekly deduction of
$ 8
for a charitable contribution to United Way.
Sollenberger
worked
56
hours during the week.
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Requirements
1. | Compute Sollenberger gross pay and net pay for the week. Assume earnings to date are$11,000. |
2. | Journalize Dairy House wages expense accrual forSollenberger work. An explanation is not required. |
3. | Journalize the subsequent payment of wages to Sollenberger |
Requirement 1. Compute
Sollenberger
gross pay and net pay for the week. Assume earnings to date are
$ 11 comma 000$11,000.
(Round all amounts to the nearest cent.)Begin by computing
Sollenberger
gross pay for the week.
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Gross Pay |
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Compute
Sollenberger
net pay for the week. (Round all amounts to the nearest cent.)
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Withholding deductions: | ||
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Net (take-home) pay |
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Requirement 2. Journalize
Dairy House
wages expense accrual for
Sollenberger
work. An explanation is not required. (Record debits first, then credits. Exclude explanations from journal entries.)
Date | Accounts and Explanation | Debit | Credit | ||
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Requirement 3. Journalize the subsequent payment of wages to
Sollenberger
(Record debits first, then credits. Exclude explanations from journal entries.)
Date | Accounts and Explanation | Debit | Credit | ||
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