Payroll Transactions

*6.2% for Social Security & 1.45% for Medicare for all problems.

1) Make a journal entry for June 10 (payday) to record the cash wages paid and withholding amounts owed on behalf of employees. For the week, gross pay totaled $6,500, federal income tax withholding totaled $628, state income tax withholding totaled $238, and life insurance premiums withheld totaled $115. To date, no single employee has reached the Social Security, FUTA, or SUTA tax threshold.

2) Make a journal entry to the employer portion of the payroll from #1 above. This journal entry for June 10 records the payroll tax expense owed. Applicable SUTA and FUTA tax rates for employees are 5.4% and 0.6%, respectively.

3) Calculate the payroll taxes for BrewHaus Restaurant for the current week. Gross wages earned: $3,200 SUTA tax rate: 5.4% FUTA tax rate: 0.6% No single employee to date has reached the Social Security, FUTA, or SUTA tax threshold. Social Security tax withheld from employee pay: $ ____________________ Medicare tax withheld from employee pay: $ ____________________ SUTA tax owed by BrewHaus Restaurant: $ ____________________ FUTA tax owed by Brewhaus Restaurant: $ ____________________

4) Record the two necessary payroll-related journal entries for Franks Fuel Corp: one for employee withholdings and one for employer payroll taxes. For the current week: -Gross salaries: $2,600 -Federal income tax withheld: $204 -State income tax withheld: $64 -The applicable SUTA and FUTA tax rates are 5.4% and 0.6%, respectively. -No single employee has, to date, reached the threshold for Social Security, FUTA, or SUTA tax. -Union dues withheld: $55

5) Calculate the payroll taxes for IMG Consulting for the current week. Gross wages earned: $18,350 SUTA tax rate: 5.4% FUTA tax rate: 0.6% No single employee to date has reached the Social Security, FUTA, or SUTA tax threshold. Social Security tax matched and paid by IMG Consulting: $ ____________________ Medicare tax matched and paid by IMG Consulting: $ ____________________ SUTA tax owed to IRS: $ ____________________ FUTA tax owed to IRS: $ ____________________

6) Record the two necessary payroll-related journal entries for Nathans Donut School, one for employee withholdings and one for employer payroll taxes. For the current week: -Gross salaries: $12,250 -Federal income tax withheld: $1,260 -State income tax withheld: $365 -The applicable SUTA and FUTA tax rates are 5.4% and 0.6%, respectively. -No single employee has, to date, reached the threshold for Social Security, FUTA, or SUTA tax. -Life insurance premiums withheld: $600 (paid 50% by employee and 50% by employer) -Workers Compensation owed by employer: $350 For Problems 7 10, find the Federal Income Tax to Withhold. Refer to Publication 15 Wage Bracket (Page 28)

7) Michael McMurphy; Single; paid bi-weekly earns $2,250. Claims 1 exemption.

8) Sarah Roe; Married, paid Monthly earns $3,175. Claims 3 exemptions.

9) Kelly Bishop; Married, paid weekly earns $890. Claims 2 exemptions.

10) Ben Laraosa; Single; paid semi-monthly earns $2,645. Claims 4 exemptions.

11) The 2023 wage threshold for Social Security wages is $160,200. Christopher Raines is a VP of Marketing at Max Energy Corporation and earns $180,000 annual salary and is paid monthly. As of October 2023, Christophers Year to Date Earnings are $150,000. Calculate: For the November 2023 payroll, calculate the Social Security tax for Christo