Sousa Realty: Payroll Information for the two-week period ending 2/19/21

Office Staff Paid on an hourly basis (Wages Expense).

Hourly rate Prev. Earnings YTD Week 1 Hours Week 2 Hours FIT

Linda Sullivan $17 $4,735 42 35 $180

Scott Ramirez $15 $4,513 43 38 $170

Sales Staff Paid commission prorated average basis (Commissions Expense).

Gross Commissions Prev. Earnings YTD FIT

Timika Chase 2,300 $5,850 $260

James Tomlinson 2,160 $5,254 $240

• The total FICA tax for OASDI is 12.4% on the first $137,000 of income
• The total FICA tax for Medicare is 2.9% on all earnings.
• Pa State income tax (SIT) is 3.07% of all income.
• Each employee contributes $35 per pay for medical insurance
• The SUTA tax rate is 5.4% on the $7,000 of employee earnings
• The FUTA tax rate is .6% on the $7,000 of employee earnings

Instructions

• Calculate the gross biweekly earnings of the two hourly employees, including over-time.
• Complete the Payroll Register using the template provided calculate the employee withholdings.
• Use the template provided to calculate employer payroll taxes for FICA OASDI, FICA Medicare, FUTA and SUTA.
• Use the journal template to journalize BOTH the payroll tax withholding and the payroll tax expens

Payroll Register

OASDI

Employee Name

M. Status/Allow

Prior YTD Earnings

Gross Pay

Taxable

FIT

SIT

OASDI

Medicare

Insurance

Net Pay

Department

l

Payroll Tax

FUTA/SUTA

Employee Name

M. Status/Allow

Prior YTD Earnings

Gross Pay

Taxable

FUTA Tax

SUTA Tax

OASDI

Medicare

Payroll Tax

DATE	GENERAL JOURNAL	POST REF	DEBIT	CREDIT