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hi, could you help me with this question? It's really confusing. SFCC Corporation has 8 employees. Information about the October payroll follows: Name Breschi, K
hi, could you help me with this question? It's really confusing.
SFCC Corporation has 8 employees. Information about the October payroll follows: Name Breschi, K Hours Worked 95 Carballo, P n/a Dangelo, J 180 Gaines, T n/a Goseco, M n/a Skolnick, J 180 Williams, R Wong, O 172 195 Pay Rate $12 per hour $3,000 per month $14 per hour $4,500 per month $10,100 per month $12 per hour $9 per hour $16 per hour Federal Income Tax Withheld $200 $850 $625 $1,100 $3,575 $480 $140 $800 Additional information is as follows: SFCC is in a state without an income tax. Employees' federal income tax withholdings depend on various factors, andemployees worked overtime, with the exception of Oscar Wong, who worked 15 hours of overtime. Overtime is No the amounts are as indicated in the above table. paid at 150% gross pay is subject to social security taxes at a 6.5% rate, on an annual base of $100,000. Assume Assume that of the normal hourly rate. that Medicare/Medicaid taxes in a 1.5% pergross earnings. These taxes are matched program. These contributions SFCC has 100% participation are $10 of month employee charitable contribution by the employer. Only Marcia are withheldfor workers' compensation insurance at a 2% of gross pay rate. None of this cost is paid by the SFCC pays from monthly pay. employee. SFCC provides employees with a group health care plan; however, the cost is fully paid by employees. The rate is $250 per month, subject to federal (0.5%) and state (1.5%) unemployment taxes on each employee's gross pay, up SFCC's payroll is per employee. to $8,000 per year. All gross pay tohad employee retirement $8,000 in the months do not contribute to thiswith the SFCC contributes 5% of employees an earned in excess of program. Employees leading up to October, plan. (a) Complete the payroll schedule on the accompanying blank worksheet. (b) Prepare journal entries for SFCC's payroll and the related payroll expenses. (a) Deductions Name Gross Earnings Federal Social Medicare/ Income Tax Security Tax Medicaid Charitable Health Insurance $ $ $ Net Earnings Breschi, K Carballo, P Dangelo, J Gaines, T Goseco, M Skolnick, J Williams, R Wong, O Totals $ - - $ - $ - - - $ - (b) GENERAL JOURNAL Date Accounts 31-Oct To record payroll 31-Oct To record employer portion of payroll taxes and benefits Debit CreditStep by Step Solution
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