The Board of Directors has moved further into reviewing the liabilities of ABC Company. They wish to
Question:
The Board of Directors has moved further into reviewing the liabilities of ABC Company. They wish to learn more about the payroll requirements of ABC Company. Using the spreadsheet below, complete the workbook for one payroll cycle.
Information
ABC Company
Number of Employees 7
Employee Name Hours worked Hourly rate
John Doe 40 $25.00
Jane Jones 40 $24.00
Jessie Smith 40 $17.00
Erik Ackers 25 $15.00
Nan Schmit 30 $17.00
Larry Johnson 35 $18.00
Christopher Hay 40 $18.00
Assume Federal Income Tax will be withheld at a rate of 20% for everyone.
FICA Social Security rate is 6.2% and Medicare is 1.45%.
When you called your State, they told you that your State Unemployment tax rate would be 5.4%.
Recall that the Federal Unemployment rate is the same for all businesses.
Required: Complete the payroll report below using the information provided.
January
Employee Name Hours worked Hourly rate Gross Pay Federal Withholding Social Security Medicare Net
John Doe
Jane Jones
Jessie Smith
Erik Ackers
Nan Schmit
Larry Johnson
Christopher Hay
Totals
Required Transactions Part 2
January 1 Record accrued payroll for January using the Payroll Report
2 Record employer payroll taxes for the same Payroll Report (hint - remember to record FUTA and SUTA as well)
7 Record payment of cash to employees.
Expert Answer:
