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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 two allowances on
Zippy, LLC has one employee who has worked January-June of the current year. The employee is single, paid weekly, and claims two 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 $7,400 $1,120 a) Use the information above and the IRS tax table (click here 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 06/30 Description Debit Credit 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 d) Prepare the journal entry Zippy, LLC will use to record their portion of the payroll taxes for June. Date 06/30 Description to record employer's portion of payroll taxes for June Debit Credit
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