Question
John Roberts is a factory worker at Neuse River Inc. earning $17.00 per hour.John is eligible for ten paid holidays and three weeks of vacation
John Roberts is a factory worker at Neuse River Inc. earning $17.00 per hour.John is eligible for ten paid holidays and three weeks of vacation and is paid "time-and-a-half" for overtime.He is also eligible for a $750 bonus at the end of the year.John's earnings so far this year are $7,500.
Tax rates are as follows:NOTE:We are using the 2018 FICA Rate.
Employee income tax 15% on all earnings
FICA 7.65% on first $128,400 of earnings
FUTA 1% on first $7,000 of earnings
SUTA 4% on first $7,000 of earnings
Assuming John worked 46 hours this week, calculate the total expense to Neuse River Inc. for this week's wages, payroll taxes and fringe benefits. What should the journal entries be?
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