Spicy Brothers Co. pays its employees time and a half for hours worked in excess of 40 per week. The information available from time records and employees individual earning records for the pay period ended November 15 is shown:

Name # of Allowances Marital Status Total Hours Rate Cumulative Earnings

Curtis, P. 1 S 43 $8.75 $5250.00

Jones, A. 0 M 40 $12.60 $6,620.00

Lane, C. 4 M 45 $19.80 $12,900.00

Rice, M. 2 S 41 $41.77 $117,760.00

West, T. 3 M 47 $52.71 $121,320.00

Spicy Brothers Co. uses weekly federal income tax withholding table, social security tax is withheld from the first $122,700 of earnings at the rate of 6.2%, Medicare tax is withheld at the rate of 1.45%.

FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings.

Curtis and Rice have $50 withheld for health insurance. Jones, and West have $60 withheld to be invested in the credit union.

Rice federal income tax is $192, and West $315. Attached are the wage bracket tables for Weekly payroll for both Single and Married. wage-bracket-method-tables-2019-weekly.pdf

Lane, Rice and West are consultants for the firm and Curtis and Jones are all office workers.

Answer the following questions: (Show work where possible)

1) What are the gross earnings for each employee?

2) What amount(s) will be withheld for each employee for:

a) social security?

b) Medicare?

c) Federal Income Tax?

d) Other?

3) What is Net Pay for each employee?

4) What is the total FUTA liability for the employer (ie. how much is owed)?

5) What is the total SUTA liability for the employer (ie. how much is owed)?

Show the required journal entries for the payroll, the employer payroll taxes which will be paid at a later date, and the payment of the payroll. Pretend you have a general journal and make it obvious which accounts will be debited and credited.