People are paid once a month on the last day of the month. Tom is paid a salary of $5,000 a month, Walter is paid $8.00 an hour, and Thomas are paid a salary of $2,500 a month. Walter worked a total of 184 hours in May all of which are regular hours. No overtime was worked this entire month. Earnings are subject to 6% social security tax and 1.5% Medicare tax. The federal income tax withheld from each employees payroll check for the month is as follows: Tom - $547.00; Walter - $112.00; Thomas - $268.00. Also, dont forget about the employer match and unemployment taxes. Make a journal entry. The federal unemployment rate is 0.8% and the state unemployment rate is 5.4%. (Remember, federal unemployment is only calculated on the first $7,000 of earnings and state unemployment is also only calculated on the first $7,000 of earnings). Record the payroll accrual and the pay roll taxes accrual on May 30. Record the payment of the payroll on the 31st. Checks no. 2571 - 2573 are used for payroll.

Tom Rogers Withholding Allowances: 1 Married Pay Rate: 5,000 per month Earnings Paid Overtime Earnings Period Total Ending Hours First Quarter Salary April 30th May 31st Salary Total Regular Earnings 15,000.00 5,000.00 Check No. Social Security Tax 900.00 300.00 Total Cumulative Earnings Total 15,000.00 15,000.00 5,000.00 20.000,00 Deductions Federal Medicare Income Tax . Total 225.00 1,641.00 2.766.00 75.00 547.00 922.00 547.00 Net Amount 12,234.00 4.078.00 Salary 2563 2571 Walter Williams Withholding Allowances: 1 Pay Rate: $8.00 per hour Married Paid Earnings Total Hours Period Ending First Quarter April 30th May 31st Regular Earnings 4 160.00 1,344.00 Overtime Earnings - Check No. Total Earnings 4.160.00 1,344.00 Social Security Tax 249.60 80.64 Cumulative Total 4,160.00 5,504.00 Deductions Federal Medicare Income Tax Tax 62.40 306.00 20.16 94.00 112.00 Total 618.00 194.80 Net Amount 3,542.00 1,149.20 166 184 2564 2572 Total Thomas Fort Withholding Allowances: 1 Married Pay Rate: 2.500 per month Earnings Paid Regular Earnings Overtime Earnings Total Earnings Cumulative Total Social Security Tax Deductions Federal Medicare Income Tax Tax Total Net Amount Check No. Period Total Ending Hours First Quarter Salary April 30th Salary May 31st Salary Total 268.00 268.00 2573 Payroll Register Earnings Paid Total Deductions Social Federal Security Medicare Income Tax Tax Tax 547.00 112.00 268.00 Net Amount Employee Name Total Hours Regular ($) Overtime ($) Tom Rogers Walter Williams Thomas Fort Total Total Check No. 2571 2572 2573