Nielson Corporation has three employees. Each employee is paid overtime at time and one-half after the first 40 hours worked for the week. The current social security and medicare taxes are 6.2% and 1.45% respectively. Social security tax is capped on the first $140,000 of annual wages. The current unemployment tax rates are 3% for state and 1% for federal on the first $8,000 of annual wages. Below is the payroll information for the first week of the new year (therefore, the annual wage caps will not apply). Employee Hourly Rate Hours Worked Federal W/H Rate Roth 401k Deduction Health Insurance United Way Susan W. 27 45 20% 120 150 5 George B. 25.25 50 20% 100 200 5 Maria M. 23 48 15% 75 125 5 a. Prepare a payroll register for the week's payroll (use the form provided to the right). b. Record the journal entry for the payroll for the week. c. Record the employer payroll tax expense for the week. a. Payroll Register for Week 1. Week ended January 7, 2022 (Round to the nearest cent) Employee Regular Wages Overtime Wages Gross Wages Federal W/H Tax Social Security Tax Medicare Tax Roth 401k Health Insurance United Way Total Deductions Net Pay Susan W. $40.50 $1,282.50 $256.50 $120.00 $150.00 $5.00 $629.21 $652.89 George B. $37.88 $1,388.75 $277.75 $100.00 $200.00 $5.00 $688.99 $699.76 Maria M. $34.50 $1,196.00 $239.20 $75.00 $125.00 $5.00 $535.69 $660.31 Total $3,867.25 $773.45 $295.00 $475.00 $15.00 $1,854.29 $2,012.96 b. Record the payroll journal entry for week ended January 7. General Journal Date Account Debit Credit 2022 7-Jan Wages Expense 3,867.25 773.45 295.00 475.00 15.00 239.77 56.08 2,012.96 c. Record the employer payroll tax expense for the week. General Journal Date Account Debit Credit 2022 7-Jan 450.53 239.77 56.08 38.67 116.02
Nielson Corporation has three employees. Each employee is paid overtime at time and one-half after the first 40 hours worked for the week. The current social security and medicare taxes are 6.2% and 1.45% respectively. Social security tax is capped on the first $140,000 of annual wages. The current unemployment tax rates are 3% for state and 1% for federal on the first $8,000 of annual wages. Below is the payroll information for the first week of the new year (therefore, the annual wage caps will not apply). Employee Hourly Rate Hours Worked Federal W/H Rate Roth 401k Deduction Health Insurance United Way Susan W. 27 45 20% 120 150 5 George B. 25.25 50 20% 100 200 5 Maria M. 23 48 15% 75 125 5 a. Prepare a payroll register for the week's payroll (use the form provided to the right). b. Record the journal entry for the payroll for the week. c. Record the employer payroll tax expense for the week. a. Payroll Register for Week 1. Week ended January 7, 2022 (Round to the nearest cent) Employee Regular Wages Overtime Wages Gross Wages Federal W/H Tax Social Security Tax Medicare Tax Roth 401k Health Insurance United Way Total Deductions Net Pay Susan W. $40.50 $1,282.50 $256.50 $120.00 $150.00 $5.00 $629.21 $652.89 George B. $37.88 $1,388.75 $277.75 $100.00 $200.00 $5.00 $688.99 $699.76 Maria M. $34.50 $1,196.00 $239.20 $75.00 $125.00 $5.00 $535.69 $660.31 Total $3,867.25 $773.45 $295.00 $475.00 $15.00 $1,854.29 $2,012.96 b. Record the payroll journal entry for week ended January 7. General Journal Date Account Debit Credit 2022 7-Jan Wages Expense 3,867.25 773.45 295.00 475.00 15.00 239.77 56.08 2,012.96 c. Record the employer payroll tax expense for the week. General Journal Date Account Debit Credit 2022 7-Jan 450.53 239.77 56.08 38.67 116.02
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 4E
Related questions
Question
Nielson Corporation has three employees. Each employee is paid overtime at time and one-half | ||||||||||
after the first 40 hours worked for the week. The current social security and medicare taxes are 6.2% and 1.45% | ||||||||||
respectively. Social security tax is capped on the first $140,000 of annual wages. The current |
||||||||||
tax rates are 3% for state and 1% for federal on the first $8,000 of annual wages. | ||||||||||
Below is the payroll information for the first week of the new year (therefore, the annual wage caps will not apply). | ||||||||||
Employee | Hourly Rate | Hours Worked | Federal W/H Rate | Roth 401k Deduction | Health Insurance | United Way | ||||
Susan W. | 27 | 45 | 20% | 120 | 150 | 5 | ||||
George B. | 25.25 | 50 | 20% | 100 | 200 | 5 | ||||
Maria M. | 23 | 48 | 15% | 75 | 125 | 5 | ||||
a. Prepare a payroll register for the week's payroll (use the form provided to the right). | ||||||||||
b. Record the |
||||||||||
c. Record the employer payroll tax expense for the week. |
a. Payroll Register for Week 1. Week ended January 7, 2022 (Round to the nearest cent) | |||||||||||||
Employee | Regular Wages | Overtime Wages | Gross Wages | Federal W/H Tax | Social Security Tax | Medicare Tax | Roth 401k | Health Insurance | United Way | Total Deductions | Net Pay | ||
Susan W. | $40.50 | $1,282.50 | $256.50 | $120.00 | $150.00 | $5.00 | $629.21 | $652.89 | |||||
George B. | $37.88 | $1,388.75 | $277.75 | $100.00 | $200.00 | $5.00 | $688.99 | $699.76 | |||||
Maria M. | $34.50 | $1,196.00 | $239.20 | $75.00 | $125.00 | $5.00 | $535.69 | $660.31 | |||||
Total | $3,867.25 | $773.45 | $295.00 | $475.00 | $15.00 | $1,854.29 | $2,012.96 | ||||||
b. Record the payroll journal entry for week ended January 7. | |||||||||||||
General Journal | |||||||||||||
Date | Account | Debit | Credit | ||||||||||
2022 | |||||||||||||
7-Jan | Wages Expense | 3,867.25 | |||||||||||
773.45 | |||||||||||||
295.00 | |||||||||||||
475.00 | |||||||||||||
15.00 | |||||||||||||
239.77 | |||||||||||||
56.08 | |||||||||||||
2,012.96 | |||||||||||||
c. Record the employer payroll tax expense for the week. | |||||||||||||
General Journal | |||||||||||||
Date | Account | Debit | Credit | ||||||||||
2022 | |||||||||||||
7-Jan | 450.53 | ||||||||||||
239.77 | |||||||||||||
56.08 | |||||||||||||
38.67 | |||||||||||||
116.02 | |||||||||||||
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 4 images
Recommended textbooks for you
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning