Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hello, Im having trouble with this question Zion, Inc, has one employee who has worked January - June of the current year. The employee is
Hello, Im having trouble with this question
Zion, Inc, has one employee who has worked January - June of the current year. The employee is single, paid weekly, and claims three allowances on her W-2. The company is in a state that has no state income taxes. The FICA Social Security tax rate is 6.2% on the first $118,500 of wages and the FICA Medicare tax rate is 1.45% on all wages. Zion, Inc.'s FUTA tax rate is 0.6% on the first $7,000 of wages and their SUTA tax rate is 2.3% on the first $8,000 of wages. The employee's earnings thus far are as follows: Gross pay Jan - May Gross pay for June $6,700 a) Use the information above and the IRS tax table (click to pop open) to calculate all of the taxes that should be withheld from the employees paycheck and her net pay for June. Round values to 2 decimal places if needed. b) Prepare the journal entry Zion, Inc. will record to accrue the June wages for this employee. c) Use the information provided to calculate the payroll taxes that Zion must pay on the employee's behalf for the month of June FICA.SS FICA-Medicare c) Use the information provided to calculate the payroll taxes that Zion must pay on the employee's behalf for the month of June d) Prepare the journal entry Zion, Inc. will use to record their portion of the payroll taxes for June. Zion, Inc, has one employee who has worked January - June of the current year. The employee is single, paid weekly, and claims three allowances on her W-2. The company is in a state that has no state income taxes. The FICA Social Security tax rate is 6.2% on the first $118,500 of wages and the FICA Medicare tax rate is 1.45% on all wages. Zion, Inc.'s FUTA tax rate is 0.6% on the first $7,000 of wages and their SUTA tax rate is 2.3% on the first $8,000 of wages. The employee's earnings thus far are as follows: Gross pay Jan - May Gross pay for June $6,700 a) Use the information above and the IRS tax table (click to pop open) to calculate all of the taxes that should be withheld from the employees paycheck and her net pay for June. Round values to 2 decimal places if needed. b) Prepare the journal entry Zion, Inc. will record to accrue the June wages for this employee. c) Use the information provided to calculate the payroll taxes that Zion must pay on the employee's behalf for the month of June FICA.SS FICA-Medicare c) Use the information provided to calculate the payroll taxes that Zion must pay on the employee's behalf for the month of June d) Prepare the journal entry Zion, Inc. will use to record their portion of the payroll taxes for JuneStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started