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Assignment: ACT 1963 Unit 2 Homework

Note: For this edition, the 2014 federal income tax tables, FICA rates, OASDI rate of 6.2% on wages up to $117,000 and the employee and employer HI rate of 1.45% on all wages was used.

Unless instructed otherwise, click here to calculate hourly rate and overtime rates.

Vulcra, Inc., has a semimonthly payroll of $67,520 on September 12. The total payroll is taxable under FICA Taxes-HI; $63,070 is taxable under FICA Taxes-OASDI; and $10,330 is taxable under FUTA and SUTA. The state contribution rate for the company is 4.1%. The amount withheld for federal income taxes is $9,837. The amount withheld for state income taxes is $1,461.

a. Journalize the payment of the wages, and record the payroll taxes on September 12.

If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.

b. Assume that the employees of Vulcra, Inc., must also pay state contributions (disability insurance) of 1% on the taxable payroll of $62,150.00 and that the employees' contributions are to be deducted by the employer. Journalize the September 12 payment of wages, assuming that the state contributions of the employees are kept in a separate account.

If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.

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2Problem 6-05A Algorithmic

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Account Debit Credit Payment of wages - Select your answer -CashFICA Taxes PayablePayroll TaxesSUTA Taxes PayableWagesCorrect 1 of Item 1 - Select your answer -FICA Taxes Payable-OASDIFUTA Taxes PayablePayroll TaxesSUTA Taxes ExpenseWagesCorrect 4 of Item 1 - Select your answer -FICA Taxes ExpenseFICA Taxes Payable-HIPayroll TaxesSUTA Taxes PayableWagesCorrect 7 of Item 1 - Select your answer -Employees FIT PayableFICA Tax ExpenseFUTA Taxes PayablePayroll TaxesWagesCorrect 10 of Item 1 - Select your answer -Employees SIT PayableGarnishmentsPayroll TaxesSUTA Taxes PayableWagesCorrect 13 of Item 1 - Select your answer -CashGarnishmentsFUTA Taxes PayableSUTA Taxes PayableWagesCorrect 16 of Item 1             Payroll taxes - Select your answer -CashEmployees FIT PayablePayroll TaxesSUTA Taxes PayableWagesCorrect 19 of Item 1 - Select your answer -CashEmployees FIT PayableFUTA Tax ExpenseFICA Taxes Payable-OASDIWagesCorrect 22 of Item 1 - Select your answer -CashFICA Taxes Payable-HIPayroll TaxesSUTA Tax ExpenseWagesCorrect 25 of Item 1 - Select your answer -CashFICA Tax ExpenseFUTA Taxes PayablePayroll TaxesWagesCorrect 28 of Item 1 - Select your answer -CashPayroll TaxesSUTA Taxes ExpenseSUTA Taxes PayableWagesCorrect 31 of Item 1

Explanation / Answer

Payroll Expeses A/C dr.           67,520 TO FICA tax payable A/c          3,910 TO HI taxes payable 65 TO FUTA and SUTA tax payble 640 ToState Contribution tax payable          2,768 To Federal Income tax payable 9837 To State Inome TAX 1461 To Payroll expenses payable        48,838

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