Sandhill Hardware has four employees who are paid on an hourly basis plus time-and-a-half for all hours worked in excess of 40 a week. Payroll data for the week ended March 15 are presented below. Hours Worked Employee Ben Abel United Fund Federal Income Tax Withholdings $48.00 Hourly Rate $8.00 40 $5.00 Rita Hager 42 20.00 21.00 5.00 Jack Never 44 9.00 60.00 8.00 Sue Perez 46 9.00 61.00 5.00 The following tax rates are applicable:FICA 7.65% (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128.400 and the Medicare tax rate of 1.45% on all salaries and wages), state income taxes 3%, state unemployment taxes 5.4%, and federal unemployment 0.6%. Journalize employer payroll taxes. No employee has reached the Social Security limit of $128,400 or the FUTA/SUTA limit of $7,000. (Round answers to 2 decimal places, eg. 15.25. Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit Mar. 15 The following payroll liability accounts are included in the ledger of Pharoah Company on January 1 $760.00 1.204.60 108.95 FICA Taxes Payable Federal Income Taxes Payable State Income Taxes Payable Federal Unemployment Taxes Payable State Unemployment Taxes Payable Union Dues Payable 288.95 1.954.40 870.00 In January, the following transactions occurred. Jan 10 12 Sent check for $870.00 to union treasurer for union dues. Sent check for $1.964 60 for FICA taxes and federal income taxes withheld. Paid state income taxes withheld from employees. Paid federal and state unemployment taxes 17 20 At January 31. the company completed the monthly payroll register, which shows salaries and wages $61.000. The company makes an entry for employer payrollares: FICA taxes 7.65% (the 7 65FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $61.000 and the Medicare tax rate of 1.45% on all salaries and wages), federal unemployment taxes 0.6% and state unemployment taxes 5.4% Journalize the January transactions. (Round answers to 2 decimal places, s. 15.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit At Wildhorse Manufacturing the estimated gross payroll total for all employees this year is $866,000. The job dassifications and their estimated payroll are as follows: administrative staff $150,000, warehouse staff $224,000, and manufacturing staff $492,000. The premium rate for administrative staff is 0.2%, warehouse staff 1.4%, and manufacturing staff 3.8%. Actual payroll is $879,000. The job classifications and their actual payroll are as follows: administrative staff $148,000, warehouse staff $229,000, and manufacturing staff, $502,000. (a) Prepare the journal entry for the payment of workers' compensation premium. (Credit account titles are automatically indented when the amount is entered. Do not indent manually) Debit Account Titles and Explanation Credit (To record payment of workers' compensation insurance premium)
