Assume during the quarter ending December 31 of the current year, Cox Security S

Question

Assume during the quarter ending December 31 of the current year, Cox Security Systems had 13 weekly paydays and three monthly paydays. The names of the employees of Cox Security Systems and their regular salaries are shown in the following payroll register. Note that Hall and Short are paid monthly on the last payday, while all others are paid weekly.

*Monthly

In addition to the regular salaries, the company pays an annual bonus based on the amount of earnings for the year. For the current year, the bonus amounts to 8% of the annual salary paid to each employee. The bonus is to be paid along with the regular salaries on December 28, but the amount of the bonus and the amount of the regular salary will be shown separately on each employee's earnings statement. Assume that all employees received their regular salary during the entire year.

The payroll register for the period ending December 28th is shown reflecting the following for each employee:

The wage-bracket method is used to withhold federal income tax from the regular salaries.

A flat 25% is withheld on the annual bonus.

Total salaries and bonuses are subject to a 2% state income tax and a 1% city income tax.

For Period Ending December 28, 20--

Complete the following form to show:

a. Total earnings paid during the quarter, including both the regular and the supplemental earnings.

b. Total amount of FICA taxes withheld during the quarter.

c. Total amount of federal income taxes withheld during the quarter.

d. Total amount of state income taxes withheld during the quarter.

e. Total amount of city income taxes withheld during the quarter.

f. Total net amount paid each employee during the quarter.

When computing withholding, round each amount to the nearest cent. If applicable, use rounded amount in subsequent computations. And use final rounded amount to determine the total.

the Wage-Bracket Method Tables.

Employee Name Marital
Status No. of W/H
Allowances Regular
Earnings Hall, Michael S 3 $5,000*    Short, Joy T. S 0 2,750*    Abbott, Linda S 1 520      Smith, Joseph S 0 465      Tols, Sean M. S 0 380      Gillespie, Michelle S 0 350      Smart, Jennifer S 5 575      White, Matthew J. M 3 425     

Explanation / Answer

  

MARITAL STATUS NO. OF W/H ALLOW. EARNINGS DEDUCTIONS ( a) ( b ) ( a ) ( b ) ( c ) ( d ) ( e ) EMPLOYEE NAME REGULAR SUPP'L. TOTAL FICA NET Regular x 8% x 12 months or 52 weeks OASDI @6.2% HI @ 1.45% FIT SIT @ 2% CIT @ 1% PAY Hall, Michael S 3 (M) 5,000.00 4800 9800 607.6 142.1 $1,521.63 196 98 7234.668 Short, Joy T. S 0 (M) 2,750.00 2640 5390 334.18 78.155 $857.96 107.8 53.9 3958.005 Abbott, Linda S 1 520.00 2163.2 2683.2 166.3584 38.9064 $621.44 53.664 26.83 1775.9972 Smith, Joseph S 0 465.00 1934.4 2399.4 148.7628 34.7913 $469.10 47.988 23.99 1674.7679 Tols, Sean M. S 0 380.00 1580.8 1960.8 121.5696 28.4316 $381.02 39.216 19.61 1370.9528 Gillespie, Michelle S 0 350.00 1456 1806 111.972 26.187 $350.14 36.12 18.06 1263.521 Smart, Jennifer S 5 575.00 2392 2967 183.954 43.0215 $536.74 59.34 29.67 2114.2745 White, Matthew J. M 3 425.00 1768 2193 135.966 31.7985 $388.96 43.86 21.93 1570.4855    Totals 10465 18734.4 29199.4 1810.3628 423.3913 $5,127.00 583.988 291.99 20962.6719 Compute the employer's FICA taxes for the pay period ending December 23. OASDI Taxes    OASDI taxable earnings 29,199.40 HI taxable earnings 29,199.40    OASDI taxes 1,810.36 HI taxes 423.39

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