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Zippy, LLC has one employee who has worked January - June of the current year. The employee is single, paid weekly, and claims three allowances

Zippy, LLC has one employee who has worked January - June of the current year. The employee
is single, paid weekly, and claims three allowances on her W-2. The company is in a state that has
no state income taxes. The FICA Social Security tax rate is 6.2% on the first $118,500 of wages
and the FICA Medicare tax rate is 1.45% on all wages. Zippy, LLC's FUTA tax rate is 0.6% on the
first $7,000 of wages and their SUTA tax rate is 2.3% on the first $8,000 of wages.
The employee's earnings thus far are as follows:
Gross pay Jan - May Gross pay for June
$7,100,$1,400
a) Use the information above and the IRS tax table (click here to popen) to calculate all of the
taxes that should be withheld from the employees paycheck and her net pay for June. Round
values to 2 decimal places if needed.
b) Prepare the journal entry Zippy, LLC. will record to accrue the June wages for this employee.
c) Use the information provided to calculate the payroll taxes that Zippy must pay on the
employee's behalf for the month of June
FICA-SS
FICA-Medicare
FUTA
SUTA
Total ER taxes
d) Prepare the journal entry Zippy, LLC will use to record their portion of the payroll taxes for June.
to record employer's portion of payroll taxes for June
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