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Part $1$

Olivia Robertson works for MRK all year and earns a monthly salary of $ $12400.$ There is no overtime pay. Olivia$\text{'}$s income tax withholding rate is $10\%$ of gross pay. In addition to payroll$$ taxes, Olivia elects to contribute $4\%$ monthly to United Way. MRK also deducts $ $150$ monthly for$$ co$-$payment of the health insurance premium. As of September$30,$ Olivia had $ $124,000$ of cumulative earnings

For all payroll$$ calculations, use the following tax rates and round amounts to the nearest$$ cent:

$$Employee:

$$OASDI: $6\mathrm{.}2\%$ on first $ $132,900$earned; Medicare: $1\mathrm{.}45\%$ up to $ $200$ comma $000,2\mathrm{.}35\%$ on earnings above $ $200,000.$

$$Employer:

$$OASDI: $6\mathrm{.}2\%$ on first $ $132,900$earned; Medicare: $1\mathrm{.}45\%$; $$FUTA: $0\mathrm{.}6\%$ on first $ $7$ comma $000$earned; SUTA: $5\mathrm{.}4\%$ on first $ $7,000$ earned.

Part $1$

Requirement $1.$ Compute Olivia$\text{'}$s net pay for October. $($Round all amounts to the nearest$$ cent.$)$

Withholding deductions:

Net $($take$-$home$)$ pay

Part $2$

Requirement $2.$ Journalize the accrual of salaries expense and the payment related to the employment of Olivia Robertson. $($Record debits$$ first, then credits. Select explanations on the last line of the journal entry$$ table.$)$

Begin with the entry to accrue salaries expense and payroll withholdings for Olivia Robertson. $($Round all amounts to the nearest$$ cent.$)$

Date

Accounts and Explanation

Debit

Credit

Part $3$

Now record the entry to record the payment of wages to Olivia Robertson. $($Round all amounts to the nearest$$ cent.$)$

Date

Accounts and Explanation

Debit

Credit