P11-26A (similar to) Question Help Len Willson is general manager of United Salo
ID: 2519662 • Letter: P
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P11-26A (similar to) Question Help Len Willson is general manager of United Salons During 2018, Wilson worked for United incurred payroll bax expense on Wlson for FICA tax. The company ailso the compeny al yoar at a $12,200 monty salary. He aso eamed a yer-end paid state unemployment tax and federal unemployment tax borus oqual to 15% of his annual salary Who sfodemi in a etax withheld (Cikte ioon to view peyo, tarato mgan.) C during 2018 was $1,220 per month, plus $3,294 on his bonus check. State income Ox withheld came to$130 per more, pus $120 onthe bonus. FICA ti was 4 withheld on the annual eamings. Wilson authorized the following payroll 4$15 per month. deductions Carity Fund ontbuton of 1%oftotal earnings and Ite insurance of Requirement 1.Compute Wilson's gross pay, paynoll deductions, and net pay for the full year 2018. Round al amounts to the nearest dollar Begin by computing Wilson's gross pany for the yewr (Round al amounts to the nearest dollar) Gross pay Gross Pey Choose from any ist or enter any number in the input fielids and then click Check Answer Clear All Check Answer MacBook 5 6 0Explanation / Answer
1) Wilson's gross pay for the year. Wages = $12,200 x 12 months $146,400.00 Bonus 15% x $146,400 $21,960.00 Gross Pay $168,360.00 Net pay Gross Pay $168,360.00 Withholding deductions: Federal income tax = $1220 x 12 months + 3294 $17,934 State income tax = $130 x 12 months + $120 $1,680 Employee OASDI tax = 6.2% x $118,500 $7,347 Employee Medicare tax = 1.45% x $168,360 $2,441 Charity fund contribution ($168,360 x 1%) $1,684 Life insurance ($15 x 12 months) $180 Total withholdings $31,266 Net (take-home) pay $137,094 b) Payroll expense for Wilson Gross Pay $168,360 Employer Payroll Taxes: Employee OASDI tax = 6.2% x $118,500 $7,347 Employee Medicare tax = 1.45% x $168,360 $2,441 FUTA = .6% x 7000 $42 SUTA = 5.4% x 7000 $378 Total Employer Payroll Tax $10,208 Total Payroll Expense $178,568 c) Accounts and Explanation Debit Credit Salaries Expense $146,400 Bonus $21,960 Employee Federal Income Taxes Payable $17,934 Employee State Income Taxes Payable $1,680 FICA-OASDI Taxes Payable $7,347 FICA-Medicare Taxes Payable $2,441 Charity Fund Payable $1,684 Life Insurance Payable $180 Cash $137,094 d) Accounts and Explanation Debit Credit Payroll Tax Expense $10,208 FICA-OASDI Taxes Payable $7,347 FICA-Medicare Taxes Payable $2,441 FUTA $42 SUTA $378
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