Question

The following is a payroll sheet for Windsor Imports for the month of September 2020. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $128,400. In addition, 1.45% is charged both employer and employee for an employee's wages in excess of $128,400 per employee. Complete the payroll sheet. (Round answers to 2 decimal places, eg. 15.26.) Earnings to Aug. 31 September Earnings Income Tax Withholding Name FICA B.D. Williams $6,700 $900 $ D. Raye 6.500 800 K. Baker 7,500 1,200 F. Lopez 13,700 2.100 A. Daniels 117,300 14,200

Answer 1

Complete the payroll Sheet:					Unemployment
Name	Earnings to Aug. 31	September Earnings	Income tax Withholding @ 10%	FICA	State @1%	Federal @ 0.8%		Working for FICA
B.D.Williams	$                     6,700	$                          900	$                                            90.00	$      68.85	$        9.00	$                 7.20		(900*0.0765)
D.Raye	$                     6,500	$                          800	$                                            80.00	$      61.20	$        8.00	$                 6.40		(800*0.0765)
K.Baker	$                     7,500	$                      1,200	$                                          120.00	$      91.80	$      12.00	$                 9.60		(1200*0.0765)
F.Lopez	$                   13,700	$                      2,100	$                                          210.00	$    160.65	$      21.00	$              16.80		(2100*0.0765)
A.Daniels	$                117,300	$                    14,200	$                                      1,420.00	$    894.10	$   142.00	$            113.60		(11100*0.0765)+(3100)*0.0145)	From 14200, 11100 will touch the max limit of 128,400.
B.Kingston	$                121,800	$                    17,400	$                                      1,740.00	$    661.50	$   174.00	$            139.20		(6600*0.0765)+(10800)*0.0145)	From 14200, 6600 will touch the max limit of 128,400.
Total	$                273,500	$                    36,600	$                                      3,660.00	$ 1,938.10	$   366.00	$                  293
Account Titles and Explanation	Debit	Credit
Salaries and Wages	$             36,600.00
Income tax withholding payable		$                 3,660.00
FICA Taxes Payable		$                 1,938.10
Cash		$              31,001.90
(To record Cash Payment)
Employer Payroll Tax Expense	$               2,597.10
FICA Taxes Payable		$                 1,938.10
State Unemployment Taxes Payable		$                    366.00
Federal Unemployment Taxes Payable		$                    293.00
(To record Payroll tax expense)