Natalie is considering hiring two permanent employees who are paid on an hourly basis plus time-and-a-half for all hours worked in excess of 40 hours per week. She is curious as to how this would affect her company's financial position. She has created some hypothetical payroll data which are presented below. Employee Hours Worked Hourly Rate Cumulative Prior Earnings Federal Income Tax United Fund B. Borke 40 $12 $10,560 $? $8 E. Clarke 50 12 11,440 10 Borke and Clarke are each married and they claim 1 and 2 withholding allowances, respectively. The 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages. State income taxes are 4%. (a) Your answer is partially correct. Prepare a payroll register for the hypothetical weekly payroll. Use the tax withholding table in Illustration 13.8 in the text for federal income tax withholdings. Since both employees have exceeded the $7,000 threshold for unemployment, no additional unemployment taxes are to be accrued or paid. (Round answers to 2 decimal places, eg. 15.25.)
Natalie is considering hiring two permanent employees who are paid on an hourly basis plus time-and-a-half for all hours worked in excess of 40 hours per week. She is curious as to how this would affect her company's financial position. She has created some hypothetical payroll data which are presented below. Employee Hours Worked Hourly Rate Cumulative Prior Earnings Federal Income Tax United Fund B. Borke 40 $12 $10,560 $? $8 E. Clarke 50 12 11,440 10 Borke and Clarke are each married and they claim 1 and 2 withholding allowances, respectively. The 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages. State income taxes are 4%. (a) Your answer is partially correct. Prepare a payroll register for the hypothetical weekly payroll. Use the tax withholding table in Illustration 13.8 in the text for federal income tax withholdings. Since both employees have exceeded the $7,000 threshold for unemployment, no additional unemployment taxes are to be accrued or paid. (Round answers to 2 decimal places, eg. 15.25.)
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter13: Accounting For Payroll And Payroll Taxes
Section13.3: Reporting Withholding And Payroll Taxes
Problem 1WT
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Transcribed Image Text:Natalie is considering hiring two permanent employees who are paid on an hourly basis plus time-and-a-half for
all hours worked in excess of 40 hours per week. She is curious as to how this would affect her company's financial position. She has
created some hypothetical payroll data which are presented below.
Employee
Hours Worked
Hourly
Rate
Cumulative Prior Earnings
Federal Income Tax
United Fund
B. Borke
40
$12
$10,560
$?
$8
E. Clarke
50
12
11,440
10
Borke and Clarke are each married and they claim 1 and 2 withholding allowances, respectively. The 7.65% FICA tax rate consists of
the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages.
State income taxes are 4%.
(a)
Your answer is partially correct.
Prepare a payroll register for the hypothetical weekly payroll. Use the tax withholding table in Illustration 13.8 in the text for
federal income tax withholdings. Since both employees have exceeded the $7,000 threshold for unemployment, no additional
unemployment taxes are to be accrued or paid. (Round answers to 2 decimal places, eg. 15.25.)
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