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Really need help with this. It\'s all part of one question. Thanks. Mann Hardwar

ID: 2585740 • Letter: R

Question

Really need help with this. It's all part of one question. Thanks.

Mann Hardware has four employees who are paid on an hourly basis plus time-and-a-half for all hours worked in excess of 40 a week. Payroll data for the week ended March 15, 2017, are presented below Hours Worked 40 41 Hourly Rate $15.00 16.00 13.00 13.00 Federal Income Tax Withholdings United Fund Employee Ben Abel Rita Hager Jack Never Sue Perez $5.00 5.00 8.00 5.00 60.00 46 61.00 Abel and Hager are married. They claim 0 and 4 withholding allowances, respectively. The following tax rates are applicable: FICA 7.65%, state income taxes 3%, state unemployment taxes 5.4%, and federal unemployment 0.8%

Explanation / Answer

Hours

Regular

Overtime

Gross Pay

FICA

Federal Income Tax

State Income Tax

United Fund

Net Pay

40

600

0

600

600 x 7.65% = 45.9

49 (See from Table at 0 allowance)

600 x 3% = 18

5

482.1

41

640

1x16.1.5 = 24

664

664 x 7.65% = 50.796

20

664 x 3% = 19.92

5

568.284

44

520

4x13x1.5 = 78

598

598 x 7.65% = 45.747

60

598 x 3% = 17.94

8

466.313

46

520

6x13x1.5 = 117

637

637 x 7.65% = 48.7305

61

19.11

5

503.1595

TOTAL

2280

219

2499

191.1735

190

74.97

23

2019.8565

Journal Entries

Date

Account

Debit

Credit

March 15

Salaries & Wages Expense

TO FICA Tax Payable

TO Federal income tax payable

TO State Income Taxes Payable

TO United Contributions payable

TO Salary & Wages Payable

2,499

191.1735

190

74.97

23

2019.8565

Mar 15

Payroll Tax Expense

TO FICA Tax Payable (Employer)

TO State Unemployment Tax Payable

TO Federal Unemployment Tax Payable

346.1115

191.1735

134.946

19.992

Mar 16

Salary & Wages Payable

TO Cash

2019.8565

2019.8565

Mar 31

FICA Tax Payable (191.1735 + 191.1735)

Federal Income Tax payable

TO Cash

382.347

190

572.347

Hours

Regular

Overtime

Gross Pay

FICA

Federal Income Tax

State Income Tax

United Fund

Net Pay

40

600

0

600

600 x 7.65% = 45.9

49 (See from Table at 0 allowance)

600 x 3% = 18

5

482.1

41

640

1x16.1.5 = 24

664

664 x 7.65% = 50.796

20

664 x 3% = 19.92

5

568.284

44

520

4x13x1.5 = 78

598

598 x 7.65% = 45.747

60

598 x 3% = 17.94

8

466.313

46

520

6x13x1.5 = 117

637

637 x 7.65% = 48.7305

61

19.11

5

503.1595

TOTAL

2280

219

2499

191.1735

190

74.97

23

2019.8565