United incurred payroll tax expense on Wallace for FICA tax. The company also paid state unemployment tax and federal unemployment tax. (Click the icon to view payroll tax rate information.) Liam Wallace is general manager of United Salons. During 2018, Wallace worked for the company all year at a $9,600 monthly salary. He also earned a year-end bonus equal to 5% of his annual salary. Wallace's federal income tax withheld during 2018 was $672 per month, plus $864 on his bonus check. State income tax withheld came to $90 per month, plus $30 on the bonus. FICA tax was withheld on the annual earnings. Wallace authorized the following payroll deductions: Charity Fund contribution of 2% of total earnings and life insurance of $35 per month. Read the requirements. i More Info ed C For all payroll calculations, use the following tax rates and round amounts to the nearest cent: It Employee: ed Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% on all earnings; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. A Requirements X 1. Compute Wallace's gross pay, payroll deductions, and net pay for the full year 2018. Round all amounts to the nearest dollar. 2. Compute United's total 2018 payroll tax expense for Wallace. 3. Make the journal entry to record United's expense for Wallace's total earnings for the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus Expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required. 4. Make the journal entry to record the accrual of United's payroll tax expense for Wallace's total earnings. 5. Make the journal entry for the payment of the payroll withholdings and taxes. Print Done Requirement 1. Compute Wallace's gross pay, payroll deductions, and net pay for the full year 2018. Round all amounts to the nearest dollar. Begin by computing Wallace's gross pay for the year. (Round all amounts to the nearest dollar.) Gross pay: Salary 115,200 Bonus 5,760 $ Gross Pay 120,960 Now compute Wallace's payroll deductions and net pay for the year. (Round all amounts to the nearest dollar.) Net pay: Gross pay $ 120,960 Withholding deductions: State income tax 7347 Employee Medicare tax 1753.92 Choose from any list or enter any number in the input fields and then click Check Answer. Gross Pay 120,00 Now compute Wallace's payroll deductions and net pay for the year. (Round all amounts to the nearest dollar.) Net pay: Gross pay $ 120,960 Withholding deductions: State income tax 7347 Employee Medicare tax 1753.92 Federal income tax 8,928 State income tax 1110 Charity fund contribution 2419.2 Life insurance 420 Total withholdings 21978.12 98981.88 Net (take-home) pay United incurred payroll tax expense on Wallace for FICA tax. The company also paid state unemployment tax and federal unemployment tax. (Click the icon to view payroll tax rate information.) Liam Wallace is general manager of United Salons. During 2018, Wallace worked for the company all year at a $9,600 monthly salary. He also earned a year-end bonus equal to 5% of his annual salary. Wallace's federal income tax withheld during 2018 was $672 per month, plus $864 on his bonus check. State income tax withheld came to $90 per month, plus $30 on the bonus. FICA tax was withheld on the annual earnings. Wallace authorized the following payroll deductions: Charity Fund contribution of 2% of total earnings and life insurance of $35 per month. Read the requirements. i More Info ed C For all payroll calculations, use the following tax rates and round amounts to the nearest cent: It Employee: ed Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% on all earnings; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. A Requirements X 1. Compute Wallace's gross pay, payroll deductions, and net pay for the full year 2018. Round all amounts to the nearest dollar. 2. Compute United's total 2018 payroll tax expense for Wallace. 3. Make the journal entry to record United's expense for Wallace's total earnings for the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus Expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required. 4. Make the journal entry to record the accrual of United's payroll tax expense for Wallace's total earnings. 5. Make the journal entry for the payment of the payroll withholdings and taxes. Print Done Requirement 1. Compute Wallace's gross pay, payroll deductions, and net pay for the full year 2018. Round all amounts to the nearest dollar. Begin by computing Wallace's gross pay for the year. (Round all amounts to the nearest dollar.) Gross pay: Salary 115,200 Bonus 5,760 $ Gross Pay 120,960 Now compute Wallace's payroll deductions and net pay for the year. (Round all amounts to the nearest dollar.) Net pay: Gross pay $ 120,960 Withholding deductions: State income tax 7347 Employee Medicare tax 1753.92 Choose from any list or enter any number in the input fields and then click Check Answer. Gross Pay 120,00 Now compute Wallace's payroll deductions and net pay for the year. (Round all amounts to the nearest dollar.) Net pay: Gross pay $ 120,960 Withholding deductions: State income tax 7347 Employee Medicare tax 1753.92 Federal income tax 8,928 State income tax 1110 Charity fund contribution 2419.2 Life insurance 420 Total withholdings 21978.12 98981.88 Net (take-home) pay