Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed

image text in transcribed

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Nessus Network Auditing

Authors: Russ Rogers

2nd Edition

1597492086, 978-1597492089

More Books

Students also viewed these Accounting questions