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Jackson-Rogers Inc. has the following information for their payroll Jose Rodrigu

ID: 2467496 • Letter: J

Question

Jackson-Rogers Inc. has the following information for their payroll Jose Rodriguez, Married with 4 withholding allowances on W-4, hourly wage rate $10/hr. Overtime rate of 1.5 times wage rate for every hour over 40 hours per week. SSN: 123-45-6789 Maria Gonzales, Single with 2 withholding allowances on W-4, hourly wage rate of $15/hour. Overtime rate of 1.5 times wage rate for every hour over 40 hours per week. SSN: 987-65-4321 Bill White, 1 with 0 withholding allowances dependent on W-4, hour hourly wage rate of $15/hour. Overtime rate of 1.5 times wage rate for every hour over 40 hours per week. SSN: 123-12-1234 Required: For the week ended 11/6/2015, Jose worked 46 hours, Maria worked 42 hours and Bill worked 20 hours. Jackson-Rogers pays wages and salaries weekly. Calculate all taxes and the total paycheck for each of the 3 employees. Google IRS Circular E to find the table. Also, none of the employees YTD has exceeded the Social Security threshold. Journalize the transactions Assume, Jose has voluntary deductions of $120 towards his health insurance, that he wants the company to withhold and remit that payment to his insurance company. What would be his check amount and journalize those transactions.

Explanation / Answer

Hi, from your remarks I hope you have completed part one.

In the second part, Mr. Jose wants wants the company to withold $120 from his paycheck & remit that payment to his insurance company. The company will be paying the amount on behalf of Mr.Jose.

His check amount will be the actual check amount in part 1 less $120.

The journal entry will be as follows

Date Particulars/Ledger Debit($) Credit($) 11/06/2015 Salary Payable Account/Jose Rodrigues Account Dr. 120 11/06/2015 To Bank 120 Being amount withheld from salary payable to Jose Rordrigues and paid to insurance company on his behalf.