E12.6 (LO 1) (Payroll Tax Entries) The payroll of YellowCard Company for September 2025 is as follows.Total payroll was $480,000, of which $110,000 is exempt from Social Security tax because it represented amounts paid in excess of $142,800 to certainemployees. The amount paid to employees in excess of $7,000 (the maximum for both federal and state unemployment taxes) was $400,000. Income taxes inthe amount of $80,000 were withheld, as was $9,000 in union dues. The state unemployment tax is 3.5%, but YellowCard Company is allowed a credit of2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee's wages to $142,800 and 1.45% in excessof $142,800. The federal unemployment tax rate is 0.8% after state credit.InstructionsPrepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately.

Payroll is the total of all the benefits that a company is required to deliver to its employees on a…

Answered: E12.6 (LO 1) (Payroll Tax Entries) The…

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter7: Employee Earnings And Deductions

Section: Chapter Questions

Problem 5E

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According to a summary of the payroll of Guthrie Co., $560,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $60,000 was subject to state and federal unemployment taxes. a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.6%.$fill in the blank 56eb93018fa2006_1 b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.
P12.4 (LO 1)Excel (Payroll Tax Entries) The following is a payroll sheet for Otis Imports for the month of September 2025. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $142,800. In addition, 1.45% is charged both employer and employee for an employee's wages in excess of $142,800 per employee. Name B.D. Williams D. Raye K. Baker F. Lopez A. Daniels B. Kingston Instructions Earnings to Aug. 31 $ 6,800 6,500 7,600 13,600 131,300 136,300 September Earnings $ 800 700 1,100 1,900 13,000 16,000 Income Tax Withholding FICA Unemployment Tax Federal State a. Complete the payroll sheet and make the necessary entry to record the payment of the payroll. b. Make the entry to record the payroll tax expenses of Otis Imports. c. Make the entry to record the payment of the payroll…
E8.2 An abbreviated payroll register for the Achermann Corporation for the week ending August 18, 2020, follows: Employee Dean Schmidt Lacey Totals Journal Entries Date Federal Income Tax Withheld Gross Earnings 740.00 148.00 705.00 141.00 580.00 104.00 2,025.00 393.00 Description FICA (Social Security & Medicare) 7.65% 56.61 53.93 44.37 154.91 Retirement (Pension) Contributio n Debit 74.00 70.00 50.00 194.00 Prepare journal entries to record the following: 1. Payment of the weekly payroll 2. The payroll taxes for this time period (The SUTA rate is 5.4% and FUTA is.8%) Net Pay Credit 461.39 440.07 381.63 1,283.09
P12.3 (LO 1) (Payroll Tax Entries) Cedarville Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because August is their vacation period, vacation pay is also listed. Employee Mark Hamill Karen Robbins Brent Kirk Alec Guinness Ken Sprouse Earnings to July 31 Weekly Pay Vacation Pay to Be Received in August $4,200 $200 3,500 2,700 7,400 8,000 150 110 250 330 $300 220 660 Assume that the federal income tax withheld is 10% of wages. Union dues withheld are 2% of wages. Vacations are taken the second and third weeks of August by Robbins, Kirk, and Sprouse. The state unemployment tax rate is 2.5% and the federal is 0.8%, both on a $7,000 maximum. The FICA rate is 7.65% on employee and employer on a maximum of $142,800 per employee. In addition, a 1.45% rate is charged both employer and employee for an employee's wages in excess of $142,800. Instructions Make the journal entries necessary for each of the four August…
P13.3 (LO 1) (Payroll Tax Entries) Cedarville Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because August is their vacation period, vacation pay is also listed. Earnings to Weekly Vacation Pay to Be July 31 Employee Pay Received in August Mark Hamill $4,200 $200 Karen Robbins 3,500 150 $300 Brent Kirk 2,700 110 220 Alec Guinness 7,400 250 Ken Sprouse 8,000 330 660 Assume that the income tax withheld is 10% of wages. Union dues withheld are 2% of wages. Vacations are taken the second and third weeks of August by Robbins, Kirk, and Sprouse. The Social Security rate is 8% on employee and employer. Instructions Make the journal entries necessary for each of the four August payrolls. The entries for the payroll and for the company's liability are made separately. Also make the entry to record the monthly payment of payroll liabilities.
According to a summary of the payroll of Scofield Industries Co., $600,000 was subject to the 6.0% social security tax and $740,000 was subject to the 1.5% Medicare tax. Also, $20,000 was subject to state and federal unemployment taxes. a. Calculate the employer’s payroll taxes, using the following rates: state unemployment, 4.2%; federal unemployment, 0.8%. b. Journalize the entry to record the accrual of payroll taxes
According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $25,000 was subject to state and federal unemployment taxes. a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%. b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.
According to a summary of the payroll of Scotland Company, $450,000 was subject to the 6.0% social security tax and $500,000 was subject to the 1.5% Medicare tax. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes. The journal entry to record the accrued payroll taxes would include a a. debit to SUTA Payable for $18,900 b. debit to SUTA Payable for $630 c. credit to SUTA Payable for $18,900 d. credit to SUTA Payable for $630
According to a summary of the payroll of Scotland Company, $450,000 was subject to the 6.0% social security tax and $500,000 was subject to the 1.5% Medicare tax. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes. The journal entry to record accrued payroll taxes would include a A) credit to SUTA Payable of $18,900 B) debit to SUTA Payable of $630 C) debit to SUTA Payable of $18,900 D) credit to SUTA Payable of $630
For the year ended December 31, 2022, Oriole Electrical Repair Company reports the following summary payroll data. Gross earnings: Administrative salaries Electricians' wages Deductions: Total FICA taxes Federal income taxes withheld State income taxes withheld (3%) V United Fund contributions payable Health Insurance premiums Total (a) (b) Oriole's payroll taxes are Social Security tax 6.2%, Medicare tax 1.45%, state unemployment 2.5% (due to a stable employment record), and 0.6% federal unemployment. Gross earnings subject to Social Security taxes of 6.2% total $497,000, and gross earnings subject to unemployment taxes total $145,000. No employee exceeds the $132,900 limit related to FICA taxes. (a) Prepare a summary journal entry at December 31 for the full year's payroll. (b) Journalize the adjusting entry at December 31 to record the employer's payroll taxes. No. Account Titles and Explanation Salaries and Wages Expense FICA Taxes Payable (Round answers to 0 decimal places, eg.…
6. Journalize the payroll entries from the following information: Salaries $120,000; Income Tax deduction $20,000; Fica Tax deduction 7% of salaries; US Savings Bond deduction $2,000; SUTA Tax 4% of salaries; FUTA Tax .8 of salaries.
According to a summary of the payroll of Sinclair Company, $505,000 was subject to the 6.0% social security tax and $545,000 was subject to the 1.5% Medicare tax. Also, $10,000 was subject to state and federal unemployment taxes. Question Content Area Required: a. Compute the employer's payroll taxes using the following rates: State unemployment, 4.2%; Federal unemployment, 0.8%.$ fill in the blank bdfee804ffc2f82_1 Question Content Area b. Journalize the entry for the employer's payroll tax expense. If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select -

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