Question 1 - Current Liabilities5 MARKS Lawlor Lawn Service is considering hiring its first'real' employee. The employee
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Question:
Question 1 - Current Liabilities5 MARKS
Lawlor Lawn Service is considering hiring its first'real' employee. The employee will earn $900 weekly and
Lawlor will withhold $81 in income tax each week. The employee will also have the following payrolldeductions: charitable fund contribution of 1% of total earnings and life insurance of $10 per week. The employer must pay5.5% state payroll tax.
Requirements
1.
Calculate the amount of theemployee's weekly net pay.
2.
Journalise the entries to accrue the weekly payroll on 31 July 2016, to record theemployer's payroll
taxes and to pay the payroll on 4 August 2016.
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