Lee Werner is general manager of Countrywide Salons. During 2018, Werner worked for the company al year at a $13.400 monthly salary. He also eamed a year-end bonus equal to 20% of his annual salary Womer's federal income tax withheld during 2018 was $1.206 per month, plus 53,216 on his bonus check. State income tax withheld came to $70 per month, plus $40 on the bonus. FICA tax was withheld on the annual earnings. Wemer authorized the following payroll deductions: Charity Fund contribution of 1% of total earnings and life insurance of $10 per month Countrywide incurred payroll tax expense on Womer for FICA tax. The company also paid state unemployment tax and federal unemployment tax Click the icon to view payroll tax rate information) Read the requirements 0 More Info Requirement 1. Compute Wemer's gross pay, payroll deduct Begin by computing Womer's grous pay for the year. (Round Grosse For all payroll calculations, use the following tax wies and round amounts to the nearest cent Employee CASDI: 6.2% on frut $118.500 camed: Medicare: 145% up to $200,000, 2.5% on earrings above $200,000 Employer CASDI: 6.2% on first $118.500 eamed; Medicare: 145% on all caming FUTA 0.0% on first $7.000 earned, SUTA: 54% on first 57,000 earned Gross Pay Now compute Werner's payroll eductions and not pay for the Print Done Withholding deductions Lee Werner is general manager of Countrywide Salons. During 2018, Werner worked for the company al year at a $13.400 monthly salary. He also eamed a year-end bonus equal to 20% of his annual salary Wemer's federal income tax withheld during 2018 was $1,200 per month, plus $3,216 on his bonus check Stal income tax withheld came to $70 per month, plus $40 on the bonus FICA tax was withheld on the annual earnings. Wemer authorized the following payrol deduction: Charity Fund contribution of 1% of total earnings and the insurance of $10 per month Countrywide incurred payroll tax expense on Wormer for FICA. The company is paid state unemployment tax and federal unemployment Click the icon to view payroll tax rate information) Read the requirements Requirement 1. Compute Womer's grous pay, payroll deductions, and not pay for the ful year 2018. Round al amounts to the nearest dolar Begin by computing Werner's gross pay for the year. (Round al amounts to the nearest dolar) Grosspay Gross Pay Now compute Werner's payroll deductions and net pay for the year. (Round all amounts to the nearest dollar) Net pay Withholding deductions: Net (take home pay Requirement 2. Compute Countrywide's total 2018 payroll tax expense for Wemer. (Round all amounts to the nearest dollar) Employer Payroll Taxes Total Employer Payroll Tax TIR Requirement 3. Make the journal entry to record Countrywide's expense for Werner's total earnings for the year, his payroll deductions, and not pay Debit Series Expense and Bonus Expenses propriate Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required. (Record debts first, the credits. Exclude explanations from journal arts) Date Accounts Debit Credit Requirement 4. Make the journal entry to record the accrual of Countrywide's payroll tax expense for Womer's total aming Record debits first, the credits Exclude expirations from ouma entries) Accounts Debit Credit Date Requirement 5. Make the journal entry for the payment of the payroll withholdings and taxes. (Record debits first, then credits. Exclude explanations from joumal entries.) Date Accounts Debit Credit
