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Natalie is considering hiring two permanent employees who are paid on an hourly basis plus time-and-a-half for all hours worked in excess of 40 hours

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Natalie is considering hiring two permanent employees who are paid on an hourly basis plus time-and-a-half for all hours worked in excess of 40 hours per week. She is curious as to how this would affect her company's financial position. She has created some hypothetical payroll data which are presented below. Employee Hours Worked Hourly Rate Cumulative Prior Earnings Federal Income Tax United Fund 40 $12 $11,328 $? $8 B. Borke E. Clarke 50 12 12,272 ? 10 Borke and Clarke are each married and they claim 1 and 2 withholding allowances, respectively. The 7.65%FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages. State income taxes are 4% Prepare a payroll register for the hypothetical weekly payroll. Use the tax withholding table in Illustration 13.8 in the text for federal income tax withholdings. Since both employees have exceeded the $7.000 threshold for unemployment, no additional unemployment taxes are to be accrued or paid. (Round answers to 2 decimal places, eg. 15.25.) Earnings Wages Hours Expense Employees Regular Overtime Gross Pay B. Borke 480 480 40 0 60 -540 480 E. Clarke 50 $ $ Totals $ 90.00 Prepare a payroll register for the hypothetical weekly payroll. Use the tax withholding table in Illustration 13.8 in the text for federal income tax withholdings. Since both employees have exceeded the $7,000 threshold for unemployment, no additional unemployment taxes are to be accrued or paid. (Round answers to 2 decimal places, eg. 15.25.) Cookie Creations Payroll Register For the Week ending Taxable Earnings Medicare FICA Cumulative Earnings Social Security $ $ $ $ $ Prepare a payroll register for the hypothetical weekly payroll. Use the tax withholding table in Illustration 13.8 in the text for federal income tax withholdings. Since both employees have exceeded the $7.000 threshold for unemployment, no additional unemployment taxes are to be accrued or paid (Round answers to 2 decimal places, eg. 15.25.) Deductions Federal Income Tax State Income Tax Total United Fund $ $ Salaries and Wages Expense Net Pay $ $ Journalize the payroll for the period. (Round answers to 2 decimal places, eg. 15.25. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record payroll) Journalize the payment of the payroll. (Round answers to 2 decimal places, eg. 15.25. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record payment of payroll)

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