Stark Company has five employees. Employees paid by the hour receive a $14 per h

Question

Stark Company has five employees. Employees paid by the hour receive a $14 per hour pay rate for the regular 40-hour workweek plus one and one-half times the hourly rate for each overtime hour beyond the 40 hours per week. Hourly employees are paid every two weeks, but salaried employees are paid monthly on the last biweekly payday of each month. FICA Social Security taxes are 6.2% of the first $118,500 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. The company has a benefits plan that includes medical insurance, life insurance, and retirement funding for employees. Under this plan, employees must contribute 5 percent of their gross income as a payroll withholding, which the company matches with double the amount. Following is the partially completed payroll register for the biweekly period ending August 31, which is the last payday of August.

a. Complete this payroll register by filling in all cells for the pay period ended August 31. (Round your answers to 2 decimal places.)

b, c, d & e. Prepare the August 31 journal entry to: (Round your answers to 2 decimal places.)
b. Record the accrued biweekly payroll and related liabilities for deductions.
c. Record the employer’s cash payment of the net payroll of part b.
d. Record the employer’s payroll taxes including the contribution to the benefits plan.
e. Pay all liabilities (except for the net payroll in part c) for this biweekly period.

Employee Cumulative Pay (Excludes Current Period) Current Period Gross Pay FIT Withholding FUTA FICA S.S. Employee FICA Medicare Employee Employee Plan Withholding Employee Net Pay Pay Type Pay Hours Gross Pay SIT Withholding SUTA FICA S.S. Employer FICA Medicare Employer Employer Plan Expense Kathleen $115,250.00 Salary $7,000.00 $2,800.00 620.00 Anthony 5,700.00 Salary 660.00 112.00 33.00 36.00 66.00 Nichole 16,600.00 Regular 80 142.00 Overtime 10 41.00 Zoey 6,650.00 Regular 80 132.00 Overtime 6 38.00 Gracie 5,250.00 Regular 77 1,078.00 122.00 Overtime 37.00 Totals $149,450.00 $3,308.00 $0.00 $0.00 $0.00 $33.00 $0.00 772.00 0.00 0.00 0.00 66.00

Explanation / Answer

If any doubt please comment

Employee Cumulative Pay (Excludes Current Period) Current Period Gross Pay FIT Withholding A FUTA FICA S.S. Employee C FICA Medicare Employee D Employee Plan Withholding E Employee Net Pay G-A-B-C-D-E Pay Type Pay Hours Gross Pay G SIT Withholding B SUTA FICA S.S. Employer FICA Medicare Employer Employer Plan Expense G*5% Kathleen $115,250.00 Salary $7,000.00 $2,800.00 0 201.5 101.5 $350.00 $2,927.00 620 0 201.5 101.5 $700.00 Anthony 5,700.00 Salary 660 112 3.96 40.92 9.57 $33.00 $428.51 36 35.64 40.92 9.57 $66.00 Nichole 16,600.00 Regular 80 1120 142 0 82.46 19.285 $66.50 $978.76 Overtime 10 210 41 0 82.46 19.285 $133.00 Zoey 6,650.00 Regular 80 1120 132 2.1 77.25 18.07 $62.30 $918.38 Overtime 6 126 38 18.9 77.25 18.07 $124.60 Gracie 5,250.00 Regular 77 1,078.00 122 6.47 66.84 15.63 $53.90 $782.63 Overtime 37 58.21 66.84 15.63 $107.80 Totals $149,450.00 3308 12.53 468.97 164.05 565.70 $11,314.00 772 112.75 468.97 164.05 1131.40 6035.28 WORKING Gross salaries G FICA SS Salaries F SS taxes F*6.2% Medicare Taxes G*1.45% Salaries for FUT and SUTA S FUTA .6%*S SUTA Employee Plan Withholding G*5% Employer Plan Expense G*5%*2 Kathleen 115250 7000 3250 201.5 101.5 0 0 0 350 700 (118500-115250) Anthony 5700 $660 $660 40.92 9.57 660 3.96 35.64 33 66 Nichole 16600 1330 $1,330 82.46 19.29 0 0 0 66.5 133 (80*14)+(10*14*1.5) Zoey 6650 1246 $1,246 77.25 18.07 350 2.1 18.9 62.3 124.6 (80*14)+(6*14*1.5) (7000-6650) Gracie 5250 1078 $1,078 66.84 15.63 1078 6.47 58.21 53.9 107.8 (77*14) Total 11314 7564 468.97 164.05 2088.00 12.53 112.75 565.70 1131.40 Accounts Title Dr Cr b Salaries expenses 11314 Federal Income Tax payable 3308 State Income Tax payable 772 Social Security taxes payable 468.97 Medicare taxes payable 164.05 Employee Plan withholding payable 565.70 Salaries payable 6035.28 c Salaries payable 6035.28 Cash 6035.28 d Payroll tax expenses 1889.70 Social Security taxes payable 468.97 Medicare taxes payable 164.05 Employer Plan withholding payable 1131.40 Federal Unemployment Taxes payable 12.53 State Unemployment Taxes payable 112.75 e Federal Income Tax payable 3308 State Income Tax payable 772 Social Security taxes payable 937.94 Medicare taxes payable 328.11 Employee Plan withholding payable 565.70 Employer Plan withholding payable 1131.40 Federal Unemployment Taxes payable 12.53 State Unemployment Taxes payable 112.75 Cash 7168.42

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