A company has 100 employees, each working 40 hours per week and earning $16 an hour. Although the company does not pay any health or retirement benefits, one of the perks of working at the company is that employees are allowed free skiing on their days off. Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are 7.65% of the first $128,400 earned per employee and 1.45% thereafter. Unemployment taxes are 6.2% of the first $7,000 earned per employee. 2. Compute the total payroll tax expense the company will pay for the first week of January in addition to the total salary expense and employee withholdings calculated in Part 1. Total payroll tax expense
Q: An appliance company has three installers. Larry earns $395 per week, Curly earns $440 per week, and…
A: (a) calculate SUTA and FUTA tax (in $) does the company owe for the first quarter of the year and…
Q: Moisa Evans is a maitre d’ at Red Rock Club. On September 6, his gross pay was $900 (three days…
A: A 401(k) plan seems to be a tax-advantaged retirement savings plan provided by several American…
Q: Wolfpack Inc., a calendar year-end company, pays its employees on the last day of the month for work…
A: If a business has employees, it has to record for payroll. Payroll is the aggregate expenditure on…
Q: Lightning Electronics is a midsize manufacturer of lithium batteries. The company’s payrollrecords…
A:
Q: Moisa Evans is a maitre d' at Red Rock Club. On September 6, 20--, his gross pay was $900 (three…
A: a.
Q: A worker is paid $10,000 per month and a dearness allowance of $2,000 p.m. Worker Contribution to…
A: Basic salary includes wages and dearness allowance. Contribution to provident fund is calculated on…
Q: Moisa Evans is a maitre d’ at Red Rock Club. On September 5, his gross pay was $900 (three days…
A: The gross income is the total amount of income earned by any individual or a firm in the country…
Q: Sky Co. employed Tom Mills in Year 1. Tom earned $5,300 per month and worked the entire yearAssume…
A: Tax refers to the financial charge which is compulsory in nature and it is imposed through the…
Q: William Corp. pays its employees every two weeks. Employee wages earned over a two-week period is…
A: Date Account Titles and Explanation Debit Credit Payroll Tax Expense $6850…
Q: An appliance company has three installers. Larry earns $345 per week, Curly earns $480 per week, and…
A: FUTA: FUTA means the "Federal Unemployment Tax Act" which provides for the levy of tax on the wages…
Q: An appliance company has three installers. Larry earns $325 per week, Curly earns $470 per week, and…
A: Given that, Larry earns $325 per week Curly earns $470 per week Moe earns $575 per week The…
Q: Ken Gorman is a maitre d' at Carmel Dinner Club. On February 1, 20-- his gross pay was $880 (three…
A: (a) Gross Pay = $ 880 (b) Tips = $ 1,020 (c) Employer Contribution to 401(k) = $ 44 (d) Deductions…
Q: Townson Company had gross wages of $200,000 during the week ended December 10. The amount of wages…
A: Social Security tax payable = Gross wages × 6% = $200, 00×6% = $12, 000
Q: William Corp. pays its employees every two weeks. Employee wages earned over a two-week period is…
A: Employee wages earned over a two-week period = $250,000 Medicare Tax = 1.5% Medicare Tax ($250000 *…
Q: Nielson Corporation has three employees. Each employee is paid overtime at time and one-half…
A: Payroll Register A payroll register is a tool used to keep track of each employee's wage information…
Q: Breakin Away Company has three employees-a consultant, a computer programmer, and an administrator.…
A: Breakin Away company has asked to compute Gross pay and Net pay by considering various factors like…
Q: [The following information applies to the questions displayed below.] Aspen Ski Resorts has 100…
A: The actual direct deposit of payroll is calculated by deducting the total withholdings from the…
Q: [The following information applies to the questions displayed below.] Aspen Ski Resorts has 100…
A: When a company records the compensation of its employees, such type of accounting is known as…
Q: lightning Electronics is a midsize manufacturer of lithium batteries. The company’s payroll records…
A: Net pay means how much employee will receive after netting off all the payroll taxes. Payroll costs…
Q: Mike Smith is a college football coach making a base salary of $720,000 a year ($60,000 per month).…
A: Amount withheld for Social Security=Social Security base amount×Social Security tax rate Amount…
Q: An appliance company has three installers. Larry earns $345 per week, Curly earns $420 per week, and…
A: SOLUTION- IN THE GIVEN CASE , FIRST WE HAVE TO ASCERTAIN THE TOTAL WAGES OF THESE THREE INSTALLERS…
Q: A company has 100 employees, each working 40 hours per week and earning $16 an hour. Although the…
A: Workings:
Q: [The following information applies to the questions displayed below.] Aspen Ski Resorts has 100…
A: Payroll expenses: Payroll expenses are the amount of expenses that an employer pays to the…
Q: Wolfpack Inc., a calendar year-end company, pays its employees on the last day of the month for work…
A: Wages: Wages are the earnings of the employees for their work to the company they serve. These are…
Q: Widmer Company had gross wages of $226,000 during the week ended June 17. The amount of wages…
A: Social Security Tax Payable = Gross wages x Social security tax rate Medicare Tax Payable = Gross…
Q: Holden Simpson manages a Dairy Land drive-in. His straight-time pay is $16 per hour, with…
A: Computation of gross pay 40 * $16 + [(51 - 40hrs) * $16 *1.5] $640 + $264 $904 Computation of Net…
Q: Daniel company has 10 employees who were paid the following wages during 1984. Tom-35,000…
A: Daniel company has 10 employees Total wages of employees = $35000 + 175000 + 175000 + 80000 + 75000…
Q: During January, Luxury Cruise Lines pays employees salaries of $2 million. Withholdings in January…
A: Given the following information: During January, Luxury Cruise Lines pays employees salaries of $2…
Q: Company has five employees. Employees paid by the hour earn $14 per hour for the reg nd the 40 hours…
A: a. Employee Cumulative Pay Current Period Gross Pay FIT Withholding FUTA FICA S.S. Employee FICA…
Q: During 20--, Rachael Parkins, president of Mathieson Company, was paid a semimonthly salary of…
A: In the United States, the Social Security(OASDI) and Medicare tax programs limit the amounts of…
Q: Deep Mouse Designs has 14 employees within Denver City and County. The employees earned $9.80 per…
A: Salary earned by each employee per month=Number of hours worked×Per hour earning=160×$9.80=$1,568
Q: Determine the gross pay and the net pay for each of the three employees for the current pay period.…
A: Gross Pay: The total amount such as salary, wages, commissions, overtime, and bonus paid by an…
Q: Breakin Away Company has three employees-a consultant, a computer programmer, and an administrator.…
A: Computation is represented as below:
Q: Harry Santana manages a Frosty Boy drive-in. His straight-time pay is $19 per hour, with…
A: Formula: Net Pay = Gross pay - all deductions Deductions are taken out from gross pay derives the…
Q: Nielson Corporation has three employees. Each employee is paid overtime at time and one-half…
A: Payroll is the salary register maintained by the HR department of the company which includes the…
Q: Less Nessman, owner of Flying Turkeys Corporation, has three employees who earn $500, $600, and…
A: Statement showing calculation of amount of contribution to state and federal unemployment by Less…
Q: The company pays its workers the difference between their regular wages and the amount received for…
A: Jury duty pay: It is the difference between the employee's regular wages and the amount received for…
Q: Lightning Electronics is a midsize manufacturer of lithium batteries. The company’s payroll records…
A: Solution:- 1)Calculation of the amount of net pay as follows:- Amount of net pay = Employees earned…
Q: Wallington Company has 100 employees, each earning $525.25 a week. OASDI Amount of OASDI tax…
A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS FICA taxes Employee No.…
Q: William Corp. pays its employees every two weeks. Employee wages earned over a two-week period is…
A: Accounts Debit Credit Wages expense 250000 Social security tax payable (6% x $250000)…
Q: William Corp. pays its employees every two weeks. Employee wages earned over a two-week period is…
A: Particular Debit ($) Credit ($)…
Q: 1.A paving company has 24 employees, 15 with gross earnings of $365 per week and nine with gross…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: An appliance company has three installers. Larry earns $375 per week, Curly earns $440 per week, and…
A: (a) Larry earns $375 per week (b) Curly earns $440 per week (c) Moe earns $595 per week (d) It is…
Q: Breakin Away Company has three employees-a consultant, a computer programmer, and an administrator.…
A: Gross Pay: It is the total earning of the employee that includes both regular and overtime earnings.…
Q: William Corp. pays its employees every two weeks. Employee wages earned over a two-week period is…
A: Social Security Tax Payable = wages x Social security tax rate = $250,000 x 6% = $15,000
Q: A paving company has 24 employees, 15 with gross earnings of $365 per week and nine with gross…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Payrex Co. has six employees. All are paid on a weekly basis. For the payroll period ending January 7, total employee earnings were 12,500, all of which were subject to SUTA, FUTA, Social Security, and Medicare taxes. The SUTA tax rate in Payrexs state is 5.4%, but Payrex qualifies for a rate of 2.0% because of its good record of providing regular employment to its employees. Other employer payroll taxes are at the rates described in the chapter. REQUIRED 1. Calculate Payrexs FUTA, SUTA, Social Security, and Medicare taxes for the week ended January 7. 2. Prepare the journal entry for Payrexs payroll taxes for the week ended January 7. 3. What amount of payroll taxes did Payrex save because of its good employment record?_____1. Johnson Industries, a semiweekly depositor, pays its employees every Friday. When should the company deposit the employment taxes for each weekly payday? _____2. What rule should Bartlett Repair, a new company, follow in making its deposits for accumulated employment taxes? _____3. Quail Hollow Motors (a semiweekly depositor) accumulates taxes of 105,000 on Monday and must deposit this amount on Tuesday, the next banking day. On Tuesday, the company accumulates additional taxes of 20,000. What deposit rule should Quail Hollow Motors follow for depositing the additional 20,000?A company has 100 employees, each working 40 hours per week and earning $16 an hour. Although the company does not pay any health or retirement benefits, one of the perks of working at the company is that employees are allowed free skiing on their days off. Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are 7.65% of the first $128,400 earned per employee and 1.45% thereafter. Unemployment taxes are 6.2% of the first $7,000 earned per employee. Required: 1. Compute the total salary expense, the total withholdings from employee salaries, and the actual direct deposit of payroll for the first week of January. Total salary expense Total withholdings Actual direct deposit
- Aspen Ski Resorts has 100 employees, each working 40 hours per week and earning $20 an hour. Although the company does not pay any health or retirement benefits, one of the perks of working at Aspen is that employees are allowed free skiing on their days off. Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are 7.65% of the first $128, 400 earned per employee and 1.45% thereafter. Unemployment taxes are 6.2% of the first $7,000 earned per employee. Exercise 8 - 7A Part 1 Required: 1. Compute the total salary expense, the total withholdings from emplodddAspen Ski Resorts has 100 employees, each working 40 hours per week and earning $20 an hour. Although the company does not pay any health or retirement benefits, one of the perks of working at Aspen is that employees are allowed free skiing on their days off. Federal income taxes are withheld at 15% and state income taxes at 5 %. FICA taxes are 7.65% of the first $128, 400 earned per employee and 1.45%…Aspen Ski Resorts has 150 employees, each working 40 hours per week and earning $19 an hour. Although the company does not pay any health or retirement benefits, one of the perks of working at Aspen is that employees are allowed free skiing on their days off. Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are 7.65% of the first $142,800 earned per employee and 1.45% thereafter. Unemployment taxes are 6.2% of the first $7,000 earned per employee. Required: 1. Compute the total salary expense, the total withholdings from employee salaries, and the actual direct deposit of payroll for the first week of January. 2. Compute the total payroll tax expense Aspen Ski Resorts will pay for the first week of January in addition to the total salary expense and employee withholdings calculated in Part 1. 3. How should Aspen Ski Resorts account for the free skiing given to employees on their days off?A company has four employees who each work 40 hours per week and earn $38 per hour. Federal tax on the total wages for all four employees is $742 and state tax is $340. Social Security tax withheld from employees is 6.2% and Medicare tax is 1.45% of gross pay. Federal unemployment tax is .8% and state unemployment tax is 5.4% of gross pay. What is the total amount of payroll tax expense that the employer must pay for one week's wages? (Round to the nearest cent.) %24
- Mike Smith is a college football coach making a base salary of $720,000 a year ($60,000 per month). Employers are required to withhold a 6.2% Social Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum. Unemployment taxes are 6.2% of the first $9,000 earned per employee. 1. Assuming the Social Security base amount is $118,500, compute how much will be withheld during the year for Coach Smith's Social Security and Medicare. (Round your answer to the nearest dollar amount.) Total withheld for Social Security and Medicare during the year hrough what month will Social Security be withheld?multiple choice February January April March 3. What additional amount will the employer need to pay, assuming unemployment taxes of 6.2%? (Round your answer to the nearest dollar amount.) Additional contributionWilliam Corp. pays its employees every two weeks. Employee wages earned over a two-week period is $250,000. All wages are subject to social security and Medicare taxes, while $50,000 of wages are subject to federal and state unemployment taxes. Tax rates are the following: • Social security tax 6.0%• Medicare tax 1.5%• State unemployment compensation tax 5.4%• Federal unemployment compensation tax 0.8% Additionally, the total amount withheld from wages for federal income taxes is $75,000 and the total amount withheld for state income taxes is $12,500. ________________________________________ When William Corp. records the journal entry to recognize payroll every two weeks, Employees’ State Income Tax Payable will be: Question 24 options: Debited for $12,500 Credited for $75,000 Debited for $75,000 Neither debited nor credited Credited for $12,500William Corp. pays its employees every two weeks. Employee wages earned over a two-week period is $250,000. All wages are subject to social security and Medicare taxes, while $50,000 of wages are subject to federal and state unemployment taxes. Tax rates are the following: • Social security tax 6.0%• Medicare tax 1.5%• State unemployment compensation tax 5.4%• Federal unemployment compensation tax 0.8% Additionally, the total amount withheld from wages for federal income taxes is $75,000 and the total amount withheld for state income taxes is $12,500. ________________________________________ When William Corp. records the journal entry to recognize payroll every two weeks, Payroll Tax Expense will be: Question 30 options: Debited for $75,000 Credited for $12,500 Debited for $12,500 Credited for $75,000 Neither debited nor credited
- William Corp. pays its employees every two weeks. Employee wages earned over a two-week period is $250,000. All wages are subject to social security and Medicare taxes, while $50,000 of wages are subject to federal and state unemployment taxes. Tax rates are the following: • Social security tax 6.0%• Medicare tax 1.5%• State unemployment compensation tax 5.4%• Federal unemployment compensation tax 0.8% Additionally, the total amount withheld from wages for federal income taxes is $75,000 and the total amount withheld for state income taxes is $12,500. ________________________________________ When William Corp. records the journal entry to recognize payroll tax expense every two weeks, Social Security Tax Payable will be: Neither debited nor credited Debited for $15,000 Credited for $15,000 Credited for $3,750 Debited for $3,750William Corp. pays its employees every two weeks. Employee wages earned over a two-week period is $250,000. All wages are subject to social security and Medicare taxes, while $50,000 of wages are subject to federal and state unemployment taxes. Tax rates are the following: • Social security tax 6.0%• Medicare tax 1.5%• State unemployment compensation tax 5.4%• Federal unemployment compensation tax 0.8% Additionally, the total amount withheld from wages for federal income taxes is $75,000 and the total amount withheld for state income taxes is $12,500. ________________________________________ When William Corp. records the journal entry to recognize payroll tax expense every two weeks, Medicare Tax Payable will be: Question 27 options: Credited for $15,000 Credited for $3,750 Neither debited nor credited Debited for $15,000 Debited for $3,750William Corp. pays its employees every two weeks. Employee wages earned over a two-week period is $250,000. All wages are subject to social security and Medicare taxes, while $50,000 of wages are subject to federal and state unemployment taxes. Tax rates are the following: • Social security tax 6.0%• Medicare tax 1.5%• State unemployment compensation tax 5.4%• Federal unemployment compensation tax 0.8% Additionally, the total amount withheld from wages for federal income taxes is $75,000 and the total amount withheld for state income taxes is $12,500. ________________________________________ When William Corp. records the journal entry to recognize payroll every two weeks, State Unemployment Tax Payable will be: Question 31 options: Debited for $12,500 Credited for $75,000 Credited for $12,500 Neither debited nor credited Debited for $75,000