The Board of Directors has moved further into reviewing the liabilities of ABC Company. They wish to learn more about the payroll requirements of ABC Company. Using the spreadsheet below, complete the workbook for one payroll cycle.

Information

ABC Company                      
Number of Employees   7                  
                     
Employee Name       Hours worked   Hourly rate          
John Doe                              40               $25.00          
Jane Jones                            40              $24.00          
Jessie Smith                        40               $17.00          
Erik Ackers                         25              $15.00          
Nan Schmit                        30              $17.00          
Larry Johnson                   35              $18.00          
Christopher Hay               40             $18.00          
                     
Assume Federal Income Tax will be withheld at a rate of 20% for everyone.                      
FICA Social Security rate is 6.2% and Medicare is 1.45%.                      
When you called your State, they told you that your State Unemployment tax rate would be 5.4%.                      
Recall that the Federal Unemployment rate is the same for all businesses.                      
 
Required: Complete the payroll report below using the information provided.
January                              
Employee Name       Hours worked   Hourly rate   Gross Pay   Federal Withholding   Social Security   Medicare   Net
John Doe                              
Jane Jones                              
Jessie Smith                              
Erik Ackers                              
Nan Schmit                              
Larry Johnson                              
Christopher Hay                              
Totals          

Required Transactions   Part 2
                             
January   1   Record accrued payroll for January using the Payroll Report                      
                             
   2   Record employer payroll taxes for the same Payroll Report (hint - remember to record FUTA and SUTA as well)                      
                             
   7   Record payment of cash to employees.