Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

. Requirement 2. Compute United's total 2024 payroll tax expense for Whitney. (Round all amounts to the nearest dollar.) Employer Payroll Taxes: Total Payroll Expense

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

.

Requirement 2. Compute United's total 2024 payroll tax expense for Whitney. (Round all amounts to the nearest dollar.) Employer Payroll Taxes: Total Payroll Expense More info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000,2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. Requirement 4. Make the journal entry to record the accrual of United's payroll tax expense for Whitney's total earnings. (Record debits first, then credits. Exclude explanations from journal entries.) Requirement 5. Make the journal entry for the payment of the payroll withholdings and taxes. (Record debits first, then credits. Exclude explanations from journal entries.) Requirement 3. Make the journal entry to record United's expense for Whitney's total earnings for the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus Expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required. (Record debits first, then credits. Exclude explanations from journal entries.) \begin{tabular}{|c|c|c|c|} \hline Date & Accounts & Debit & Credit \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Larry Whitney is general manager of United Salons. During 2024, Whitney worked for the company all year at a $10,600 monthly salary. He also earned a year-end bonus equal to 5% of his annual salary. Whitney's federal income tax withheld during 2024 was $2,544 per month, plus $1,399 on his bonus check. State income tax witheld came to $130 per month, plus $30 on the bonus. FICA tax was withheld on the annual earnings. Whitney authorized the following payroll deductions: Charity Fund contribution of 1% of total earnings and life insurance of $25 per month. United incurred payroll tax expense on Whitney for FICA tax. The company also paid state unemployment tax and federal unemployment tax. (Click the icon to view payroll tax rate information.) Read the requirements. Requirement 1. Compute Whitney's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar. Begin by computing Whitney's gross pay for the year. (Round all amounts to the nearest dollar.) Now compute Whitney's payroll deductions and net pay for the year. (Round all amounts to the nearest dollar.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit In The Mental Health Service

Authors: Firth-Cozens Jenny

1st Edition

0863773117, 978-0863773112

More Books

Students also viewed these Accounting questions

Question

Distinguish between microeconomic and macroeconomic factors.

Answered: 1 week ago