Prepare the journal entries as of January 12 to record the payroll and the payroll taxes for the week ending January 8. Credit Salaries Payable for the total net pay.
Prepare the journal entry to record the payment of the payroll on January 14 when the paychecks are distributed to all workers.
The employer's taxes have been calculated on the Totals row of Taxable Earnings in Chapters 3 and 5 using the following rates:
- OASDI at 6.2% on the first $132,900 HI at 1.45% on total earnings FUTA at 0.6% on the first $7,000 SUTA at 3.6890% on the first $10,000
each employee. Note that some employees are not yet eligible for OLNEY COMPANY, INC. Insurance Deduction Register Name GRP. INS. HEALTH INS. CK. NO. Mangino, R. $0.85 $1.65 313 Flores, I. 0.85 1.65 314 Palmetto, C. 1.65 315 Waters, R. 0.85 1.65 316 Kroll, c. 0.85 1.65 317 Ruppert, C. 0.85 1.65 318 Scott, W. 0.85 1.65 319 Wickman, s. 1.65 320 Foley, L. 0.85 1.65 321 Olney, M. 0.85 1.65 322 Date Account Debit Credit 20-- Jan. 12 Wages and Salaries Expense FICA Taxes Payable-OASDI FICA Taxes Payable-HI Employees FIT Payable Employees SIT Payable Employees SUTA Payable Employees CIT Payable Simple Deductions Payable X Group Insurance Premiums Collected X EARNINGS DEDUCTIONS Name Gross OASDI HI FIT SIT SUTA CIT SIMPLE Grp. Ins. Mangino, R. $740.00 $45.88 $10.73 $64.00 $22.72] $0.44 $7.40 $20.00 $ 0.85 Flores, I. 1,058.80 65.65 15.35 127.00 32.51 0.64 10.59 50.00 0.85 Palmetto, C. 685.30 42.49 9.94 26.00 21.04 0.41 6.85 40.00 Waters, R. 1,045.35 64.81 15.16 54.00 32.09 0.63 10.45 60.00 0.85 Kroll, c. 952.00 59.02 13.80 80.00 29.23 0.57 9.52 20.00 0.85 Ruppert, C. 837.50 51.93 12.14 32.00 25.71 0.50 8.38 40.00 0.85 Scott, W. 780.00 48.36 11.31 18.00 23.95 0.47 7.80 50.00 0.85 Wickman, S. 807.69 50.08 11.71 69.00 24.80 0.48 8.08 50.00 Foley, L. 1,233.16 76.46 17.88 61.00 37.86 0.74 12.33 30.00 0.85 Olney, M. 1,500.00 93.00 21.75 68.00 46.05 0.90 15.00 80.00 0.85 Totals $ 9,639.80 $597.68 $139.77| 599.00 $295.96 $5.78| $96.40 $440.00 $ 6.8 each employee. Note that some employees are not yet eligible for OLNEY COMPANY, INC. Insurance Deduction Register Name GRP. INS. HEALTH INS. CK. NO. Mangino, R. $0.85 $1.65 313 Flores, I. 0.85 1.65 314 Palmetto, C. 1.65 315 Waters, R. 0.85 1.65 316 Kroll, c. 0.85 1.65 317 Ruppert, C. 0.85 1.65 318 Scott, W. 0.85 1.65 319 Wickman, s. 1.65 320 Foley, L. 0.85 1.65 321 Olney, M. 0.85 1.65 322 Date Account Debit Credit 20-- Jan. 12 Wages and Salaries Expense FICA Taxes Payable-OASDI FICA Taxes Payable-HI Employees FIT Payable Employees SIT Payable Employees SUTA Payable Employees CIT Payable Simple Deductions Payable X Group Insurance Premiums Collected X EARNINGS DEDUCTIONS Name Gross OASDI HI FIT SIT SUTA CIT SIMPLE Grp. Ins. Mangino, R. $740.00 $45.88 $10.73 $64.00 $22.72] $0.44 $7.40 $20.00 $ 0.85 Flores, I. 1,058.80 65.65 15.35 127.00 32.51 0.64 10.59 50.00 0.85 Palmetto, C. 685.30 42.49 9.94 26.00 21.04 0.41 6.85 40.00 Waters, R. 1,045.35 64.81 15.16 54.00 32.09 0.63 10.45 60.00 0.85 Kroll, c. 952.00 59.02 13.80 80.00 29.23 0.57 9.52 20.00 0.85 Ruppert, C. 837.50 51.93 12.14 32.00 25.71 0.50 8.38 40.00 0.85 Scott, W. 780.00 48.36 11.31 18.00 23.95 0.47 7.80 50.00 0.85 Wickman, S. 807.69 50.08 11.71 69.00 24.80 0.48 8.08 50.00 Foley, L. 1,233.16 76.46 17.88 61.00 37.86 0.74 12.33 30.00 0.85 Olney, M. 1,500.00 93.00 21.75 68.00 46.05 0.90 15.00 80.00 0.85 Totals $ 9,639.80 $597.68 $139.77| 599.00 $295.96 $5.78| $96.40 $440.00 $ 6.8
