You have almost completed the Kipley Company's Employee Payroll Register for the pay period ending January 8, 20--.

In this last task, the following steps will be completed.

Requirements:

Record the deduction for group insurance.

Record the health insurance deduction.

Record the check number assigned to each employee.

Compute and record the net pay for each employee.

Total the input columns on the Employee Payroll register.

On Employer Register, enter total gross earnings.

Prepare the journal entries as of January 12 to record the payroll and the payroll taxes for the week ending January 8. Credit Salaries Payable for the total net pay.

Prepare the journal entry to record the payment of the payroll on January 14 when the paychecks are distributed to all workers.

Employee Benefits

The table below lists the employee contributions to Group Insurance and Health Insurance. Also, a check number has been assigned to each employee. Note that some employees are not yet eligible for Group Insurance coverage under the company plan.

KIPLEY COMPANY, INC. Insurance Deduction Register
Name	GRP. INS.	HEALTH INS.	CK. NO.
Carson, F.	$0.85	$1.65	313
Wilson, W.	0.85	1.65	314
Utley, H.	0.85	1.65	315
Fife, L.	0.85	1.65	316
Smith, L.		1.65	317
Fay, G.	0.85	1.65	318
Robey, G.	0.85	1.65	319
Schork, T.		1.65	320
Hardy, B.	0.85	1.65	321
Kipley, C.	0.85	1.65	322

Completing the Payroll Register

The Employee Payroll Register presents all the computations previously performed as it applies to this payroll period.

Complete the following steps (if a field should be blank, leave it blank):

Record the amount to be withheld for group insurance.

Record the amount to be withheld for health insurance.

Each worker is to be paid by check. Assign check numbers provided to the correct employee.

Compute the net pay for each employee.

Total the input columns.

KIPLEY COMPANY, INC. Payroll Register For Period Ending January 8, 20--
	EARNINGS	DEDUCTIONS									NET PAY
Name	Gross	OASDI	HI	FIT	SIT	SUTA	CIT	SIMPLE	Grp. Ins.	Health Ins.	Ck. No.	Amount
Carson, F.	$700.00	$43.40	$10.15	$48.00	$21.49	$0.42	$21.00	$20.00
Wilson, W.	897.04	55.62	13.01	68.00	27.54	0.54	26.91	50.00
Utley, H.	678.75	42.08	9.84	14.00	20.84	0.41	20.36	40.00
Fife, L.	877.10	54.38	12.72	33.00	26.93	0.53	26.31	50.00
Smith, L.	790.00	48.98	11.46	59.00	24.25	0.47	23.70	20.00
Fay, G.	539.15	33.43	7.82	0.00	16.55	0.32	16.17	40.00
Robey, G.	623.08	38.63	9.03	7.00	19.13	0.37	18.69	50.00
Schork, T.	773.08	47.93	11.21	51.00	23.73	0.46	23.19	60.00
Hardy, B.	666.11	41.30	9.66	14.00	20.45	0.40	19.98	30.00
Kipley, C	1,000.00	62.00	14.50	43.00	30.70	0.60	30.00	80.00
Totals	$fill in the blank 3b2b1505c007ff2_41	$467.75	$109.40	$337.00	$231.61	$4.52	$226.31	$440.00

Taxable Earnings

The employer's taxes have been calculated on the Totals row of Taxable Earnings in Chapters 3 and 5 using the following rates:

OASDI at 6.2% on the first $147,000 HI at 1.45% on total earnings FUTA at 0.6% on the first $7,000 SUTA at 3.6890% on the first $10,000

Enter the Employer's total payroll taxes for the pay period ending January 8, 20--.

KIPLEY COMPANY, INC. Taxable Earnings Payroll Taxes
	Taxable Earnings	Payroll Taxes	OASDI	HI	FUTA	SUTA
Totals	$7,544.31		$467.75	$109.39	$45.27	$278.31

Journal Entry: Recording Payroll

Complete the following:

Prepare the journal entries as of January 12 to record the payroll and the payroll taxes for the week ending January 8. Credit Salaries Payable for the total net pay.

Date	Account	Debit	Credit
20-- Jan. 12	Cash FICA Taxes Payable Payroll Taxes Expense SUTA Taxes Payable Wages and Salaries Expense
	FICA Taxes Payable-OASDI FUTA Taxes Payable Payroll Taxes Expense SUTA Taxes Expense Wages and Salaries Expense
	FICA Taxes Expense FICA Taxes Payable-HI Payroll Taxes Expense SUTA Taxes Payable Wages and Salaries Expense
	Cash Employees FIT Payable FUTA Taxes Payable SUTA Taxes Payable Wages and Salaries Expense
	Employees SIT Payable Employees SUTA Expense Garnishment Payable Payroll Taxes Expense Wages and Salaries Expense
	Employees SUTA Expense Employees SUTA Payable Garnishment Expense Payroll Taxes Expense Wages and Salaries Revenue
	Employees CIT Payable FICA Taxes Expense FUTA Taxes Payable Payroll Taxes Payable Wages and Salaries Expense
	Cash Employees SUTA Expense Simple Deductions Payable FUTA Taxes Payable SUTA Taxes Payable
	Cash Employees SUTA Expense Group Insurance Premiums Collected FUTA Taxes Payable Wages and Salaries Expense
	Cash Employees SUTA Expense Health Insurance Premiums Collected FUTA Taxes Payable Wages and Salaries Expense
	Employees SUTA Expense Salaries Payable Garnishment Receivable FUTA Taxes Payable Wages and Salaries
	To record payroll.
20-- Jan. 12	Employees SIT Payable Garnishment Receivable Payroll Taxes Expense SUTA Taxes Payable Wages and Salaries
	FICA Taxes Expense FICA Taxes Payable-OASDI Payroll Taxes Distributable SUTA Taxes Expense Wages and Salaries Expense
	FICA Taxes Expense FICA Taxes Expense-HI FICA Taxes Payable-HI Payroll Taxes Expense Wages and Salaries
	Employees FIT Payable FICA Taxes Expense FUTA Taxes Payable Payroll Taxes Expense Wages and Salaries Expense
	Employees SIT Payable Garnishment Receivable Payroll Taxes Expense SUTA Taxes Payable Wages and Salaries Expense
	To record payroll taxes.

Journal Entry: Payroll Distribution

Complete the following:

Prepare the journal entry to record the payment of the payroll on January 14 when the paychecks are distributed to all workers.

Date	Account	Debit	Credit
20-- Jan. 14	Cash Employees FIT Payable FICA Taxes Payable-HI Salaries Payable Wages and Salaries Expense
	Cash Employees FIT Payable FICA Taxes Payable-HI Salaries Payable Wages and Salaries Expense