Question

Need help with this problem please

Unapter y nomework problems due Tuesday 11/21 in class Homework problem for you to complete and hand in on Tuesday, John Smith is a general manager at Mount Olive General Store. His salary is $8,000 a month. His deduction are as follows: Federal - $1500 per month; State tax withholding is $460 per month; FICA is 6.2%; Medicare is 1.45 %; Health insurance is 10%, Retirement is 5% per month; Charity is 1% per month; Life insurance is $40 per month. 1. Please complete his gross pay, payroll deductions and net pay for the month of January 2. Please compute the Mount Olive General Store payroll tax expenses for John Smith. FUTA = 0.6% and SUTA is 5.4% for the month of January. 3. Please provide the journal entries for payroll, issuing the check and payroll tax expense of the company in the month of January 4a. Then give the payroll totals for annual amounts (This is NOT a journal entry). For example the total salary is 96,000 so what are the annual totals (Salary, Social Security, Medicare, Federal Tax witholding, State tax withholding, etc. and his net pay for the entire year. 4b. How would the annual figures be different if John Smith earned $150,000 per year? Show your calculations

Answer 1

B co Employee Pay Sheet Per Year $8,000 $96,000 3 Salary (A) 16.20% 1.45% 10% 5 Federal Tax Withhold 6 State Tax Withhold 7 FICA 8 Medicare 9 Health Insurance 10 Retirement 11 Charity 12 Life Insurance 13 Total Deductions (B) 14 Net Pay (A-B) $1,500 $460 $496 $116 $800 $400 $80 $40 $3.892 $4,108 $18,000 $5,520 $5,952 $1,392 $9,600 $4,800 $960 $480 $46,704 $49,296 | 1% Employer Payroll Tax Expense Rate Per Month Per Year I $8,000 $96,000 18 Salary 20 FICA 6.20% 21 Medicare 1.45% 22 FUTA 0.60% 23 SUTA 5.40% 24 Total Payroll Tax Expense 25 26 If Annual Salary is $150,000 per year 27 FICA is upto $118,400 $496 $116 $48 $432 $1,092 $5,952 $1,392 $576 $5,184 $13,104 Employee Pay Sheet Rate Per Month Per Year $12,500 $150,000 31 Salary(A) 6.20% 1.45% 33 Federal Tax Withhold 34 State Tax Withhold 35 FICA 36 Medicare 37 Health Insurance 38 Retirement 39 Charity 40 Life Insurance 41 Total Deductions (B) 42 Net Pay (A-B) $1,500 $460 $775 $181 $1,250 $625 $125 $40 $4,956 $7,544 $18,000 $5,520 $7,341 $2,175 $15,000 $7,500 $1,500 $480 $59,475 $90,525 1% Employer Payroll Tax Expense Rate Per Month Per Year | $12,500 $150,000 46 Salary 48 FICA 49 Medicare 50 FUTA 51 SUTA 52 Total Payroll Tax Expense 6.20% 1.45% 0.60% 5.40% $775 $181 $75 $675 $1,706 $7,341 $2,175 $900 $8,100 $20,475

Rate Employee Pay Sheet Per Month Per Year 8000 =C3*12 3 Salary (A) 0.062 0.0145 5 Federal Tax Withhold 6 State Tax Withhold 7 FICA 8 Medicare 9 Health Insurance 10 Retirement 11 Charity 12 Life Insurance 13 Total Deductions (B) 14 Net Pay (A-B) 15 16 1500 460 =C3%B7 =C3*B8 =C3*B9 =C3*B10 =C3%B11 |= 5*1 =C6*12 =C7*12 =C8*12 =C9*12 =C10*12 =C11*12 =C12*12 =C13*12 1=D3-D13 40 =SUM(C5.C12) =C3-C13 Employer Payroll Tax Expense Rate Per Month 8000 =C18*12 Per Year 18 Salary 19 0.062 =C18*B20 0.0145 =C18*B21 0.006 =C18*B22 0.054 =C18*B23 =SUM(C20:C23) =C20*12 =C21*12 =C22*12 =C23*12 =C24*12 20 FICA 21 Medicare 22 FUTA 23 SUTA 24 Total Payroll Tax Expense 25 26 If Annual Salary is $150,000 per year 27 FICA is upto $118,400 28 29 Rate Employee Pay Sheet Per Month Per Year =D31/12 150000 1500 31 Salary (A) 32 33 Federal Tax Withhold 34 State Tax Withhold 35 FICA 36 Medicare 37 Health Insurance 38 Retirement 39 Charity 40 Life Insurance 41 Total Deductions (B) 42 Net Pay (A-B) 0.062 0.0145 0.1 0.05 0.01 460 =C31*B35 =C31*B36 =C31B37 =C31*B38 =C31*B39 40 =SUM(C33.C40) =C31-C41 =C33*12 =C34*12 (=IF(D31>118400),118400*6.2%,C35*C31) =C36*12 =C37*12 =C38*12 =C39*12 =C40*12 =C41*12 =D31-D41 Employer Payroll Tax Expense Rate Per Month =D46/12 150000 Per Year 46 Salary 48 FICA 49 Medicare 50 FUTA 51 SUTA 52 Total Payroll Tax Expense 53 0.062 =C46%B48 0.0145 =C46*B49 0.006 =C46*B50 0.054 =C46*B51 =SUM(C48:C51) 1=IF((D46118400), 118400*B48.C48*12) =C49*12 =C50*12 =C51*12 =C52*12

F Date G Η Journal Entries Account Title Salaries and Wages Expense Federal Tax Payable State Tax Payable FICA Payable Medicare Payable Health Insurance Payable Retirement Fund Charity Payable Life Insurance Payable Salaries and Wages Payable (To record the salary processing) Salaries and Wages Payable Cash Payroll Tax Expense FICA Payable Medicare Payable FUTA Payable SUTA Payable (To record the payroll Tax Expense) Debit ($) Credit($) $8,000 $1,500 $460 $496 $116 $800 $400 $80 $40 $4,108 2 $4,108 $4,108 3 $1,092 $496 $116 $48 $432

If you have any doubts ask in the comment section

Do rate the answer