Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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. Hourly Rate Employee Hours Worked Cumulative Prior Earnings Federal Income Tax United Fund B. Borke 40 $12 $8 $10,560 11,440 E. Clarke 50 12 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% (a) 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, es. 15.25.) (a) 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 40 E Clarke 50 Totals 90.00 S e Textbook and Media List of Accounts Attempts:0 of 4 used Submit Answer Safor Late al income tax withholdings. Since both employees have exceeded the $7,000 threshold for unemployment, no additional ployment taxes are to be accrued or paid. (Round answers to 2 decimal places, eg: 15.25) For ngs Taxable Earnings Gross Pay Cumulative Earnings Social Security Medicare $ $ $ Textbook and Media ist of Accounts Foder Attempts: 0 of 4 used Subov ANSW o loyment taxes are to be due pour Cookie Creations Payroll Register For the Week ending Deductions FICA Medicare State Income Tax Federal Income Tax $ $ extbook and Media st of Accounts Forte Submit ANSAM Attempts: 0 of 4 used gi (a) 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 pald. (Round answers to 2 decimal places, es 15.25) Salaries and Wages Expense United Fund Total Net Pay $ s e Textbook and Media List of Accounts 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. Hourly Rate Employee Hours Worked Cumulative Prior Earnings Federal Income Tax United Fund B. Borke 40 $12 $8 $10,560 11,440 E. Clarke 50 12 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% (a) 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, es. 15.25.) (a) 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 40 E Clarke 50 Totals 90.00 S e Textbook and Media List of Accounts Attempts:0 of 4 used Submit Answer Safor Late al income tax withholdings. Since both employees have exceeded the $7,000 threshold for unemployment, no additional ployment taxes are to be accrued or paid. (Round answers to 2 decimal places, eg: 15.25) For ngs Taxable Earnings Gross Pay Cumulative Earnings Social Security Medicare $ $ $ Textbook and Media ist of Accounts Foder Attempts: 0 of 4 used Subov ANSW o loyment taxes are to be due pour Cookie Creations Payroll Register For the Week ending Deductions FICA Medicare State Income Tax Federal Income Tax $ $ extbook and Media st of Accounts Forte Submit ANSAM Attempts: 0 of 4 used gi (a) 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 pald. (Round answers to 2 decimal places, es 15.25) Salaries and Wages Expense United Fund Total Net Pay $ s e Textbook and Media List of Accounts

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Commercial Energy Auditing Referance Handbook

Authors: Steve Doty

1st Edition

0881736481, 978-0881736489

More Books

Students also viewed these Accounting questions