Question
The following information is for a single employee, Carrie Cane for the week ended May 24. Total hours worked: 51 Rate: $36 per hour, with
The following information is for a single employee, Carrie Cane for the week ended
May 24.
Total hours worked: 51
Rate: $36 per hour, with time and a half for all hours in excess of 40
Federal income tax withheld: $339
State income tax withheld: $143
United Way deduction: $18
Cumulative earnings prior to current week: $6,400
Tax rates:
Social security: 6.2% on maximum earnings of $137,800. Medicare tax:
1.45% on all earnings; on both employer and employee
State unemployment: 5.4% on maximum earnings of $7,000; on employer
Federal unemployment: 0.8% on maximum earnings of $7,000; on employer
Note: Write down your answers to this problem, you'll need them for the next problem.
(a) Determine (1) total earnings, (2) total deductions, and (3) cash paid <-- (Three Dollar Amount Answers!)
(b) Determine each of the employers payroll taxes related to the earnings of Carrie Cane for the week ended May 24 and provide the total.
now assume that Carrie is the companys only employee (youve already done the math). Record the following:
(c) Journal entry for the weeks payroll.
(d) Journal entry for the employers payroll tax expense.
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