Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Zippy, LLC has one employee who has worked January June of the current year. The employee is single, paid weekly, and claims one allowance on
Zippy, LLC has one employee who has worked January June of the current year. The employee is single, paid weekly, and claims one allowance 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 $1 18,500 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 en arnings thus far are as follows: Gross pay Jan - May Gross pay for June $7,70 $1,260 a) Use the information aueve and the IRS tax table (click to pop open) 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. Gross Pay Federal Withholding FICA-SS FICA-Medicare Net Pay b) Prepare the journal entry Zippy, LLC. will record to accrue the june wages for this employee. Date Description Debit Credit 06/30 to accrue salaries and withholding for june payroll 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started