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
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