Payroll Register and Payroll Journal Entry

Mary Losch operates a travel agency called Mary$$s Luxury Travel. She has five employees, all of whom are paid on a weekly basis. The travel agency uses a payroll register, individual employee earnings records, and a general journal.

Mary$$s Luxury Travel uses a weekly federal income tax withholding table. Refer to Figure $8-4$ in the text. The payroll data for each employee for the week ended March $22,20,$ are shown. Employees are paid $1(1)/(2)$ times the regular rate for working over $40$ hours a week.

Name No$.$ of

Allowances Marital

Status Total Hours

Worked Mar. $1622$

Rate Total Earnings

Jan. $1$Mar$.15$

Bacon, Andrea $4$ M $46$ $$12\mathrm{.}00$ $$5,460\mathrm{.}00$

Cole, Andrew $1$ S $4012\mathrm{.}005,840\mathrm{.}00$

Hicks, Melvin $3$ M $4510\mathrm{.}505,100\mathrm{.}00$

Leung, Cara $1$ S $3611\mathrm{.}005,134\mathrm{.}50$

Melling, Melissa $2$ M $4013\mathrm{.}004,728\mathrm{.}00$

Social Security tax is withheld from the first $$128,400$ of earnings at the rate of $6\mathrm{.}2\%.$ Medicare tax is withheld at the rate of $1\mathrm{.}45\%,$ and city earnings tax at the rate of $1\%,$ both applied to gross pay. Bacon and Leung have $$14$ withheld and Cole and Hicks have $$6$ withheld for health insurance. Bacon and Leung have $$20$ withheld to be invested in the travel agency$$s credit union. Cole has $$39\mathrm{.}25$ withheld and Hicks has $$19\mathrm{.}00$ withheld under a savings bond purchase plan.

Mary$$s Luxury Travel$$s payroll is met by drawing checks on its regular bank account. The checks were issued in sequence, beginning with Check No$.423.$