Len Wilson is general manager of Dunes Town Salons. During $2024,$ Wilson worked for the company all year at a $$11,800$ monthly salary. He also earned a year$-$end bonus equal to $20\%$ of his annual salary. Wilson's federal income tax withheld during $2024$ was $$1,180$ per month, plus $$6,797$ on his bonus check. State income tax withheld came to $$130$ per month, plus $$110$ on the bonus. FICA tax was withheld on the annual earnings. Wilson authorized the following payroll deductions: Charity Fund contribution of $3\%$ of total earnings and life insurance of $$10$ per month. Dunes Town incurred payroll tax expense on Wilson for FICA tax. The company also paid state unemployment tax and federal unemployment tax.

Read the requirements.

Requirement $1.$ Compute Wilson's gross pay, payroll deductions, and net pay for the full year $2024.$ Round all amounts to the nearest dollar.

Begin by computing Wilson's gross pay for the year. $($Round all amounts to the nearest dollar.$)$

Gross pay:

Gross Pay

Requirements

Compute Wilson's gross pay, payroll deductions, and net pay for the full year

Round all amounts to the nearest dollar.

Compute Dunes Town's total $2024$ payroll tax expense for Wilson.

Make the journal entry to record Dunes Town's expense for Wilson's total

earnings for the year, his payroll deductions, and net pay. Debit Salaries

Expense and Bonus Expense as appropriate. Credit liability accounts for the

payroll deductions and Cash for net pay. An explanation is not required.

Make the journal entry to record the accrual of Dunes Town's payroll tax

expense for Wilson's total earnings.

Make the journal entry for the payment of the payroll withholdings and taxes.

More info

For all payroll calculations, use the following tax rates and round amounts to the

nearest cent:

Employee: OASDI: $6\mathrm{.}2\%$ on first $$132,900$ earned; Medicare: $1\mathrm{.}45\%$ up to

$$200,000,2\mathrm{.}35\%$ on earnings above $$200,000.$

Employer: OASDI: $6\mathrm{.}2\%$ on first $$132,900$ earned; Medicare: $1\mathrm{.}45\%$; FUTA:

$0\mathrm{.}6\%$ on first $$7,000$ earned; SUTA: $5\mathrm{.}4\%$ on first $$7,000$ earned.