Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sophia is also responsible for accounting for HHEC.coms payroll. Over the past year, HHEC.com has doubled its workforce. As a result, Sophia wants to make

Sophia is also responsible for accounting for HHEC.coms payroll. Over the past year, HHEC.com has doubled its workforce. As a result, Sophia wants to make sure that she is deducting the appropriate amount of taxes from the employees paychecks and that HHEC.com is paying the correct amount of payroll taxes. She gives you HHEC.coms summary payroll data at the end of Year 3 along with payroll tax information (Social Security, Medicare, state unemployment, and federal unemployment). She then asks you to prepare the summary journal entry at December 31 for the full years payroll and then make the adjusting entry to record HHEC.coms payroll taxes.

HHEC.Com has numerous employees who are paid on a weekly basis. Payroll information for the most recent week ending November 12th is given below:

Employee compensation 135,000
Charitable contributions - United Way 2,225
FICA tax rate 8.0%
Federal unemployment tax rate0.8% 0.8%
State unemployment tax rate 5.4%
Federal Income tax rate 25.0%

Of the total employee compensation, $135,000 is subject to the FICA tax and $48,500 is subject to the unemployment taxes. HHEC deducts employee charitable contributions for the United Way.

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

Energy Audit Of Building Systems An Engineering Approach

Authors: Moncef Krarti

1st Edition

0849395879, 978-0849395871

More Books

Students also viewed these Accounting questions

Question

Determine the amplitude and period of each function.

Answered: 1 week ago