Williams Company pays its employees time- and- a- half for hours worked in excess of 40 per
Question:
Taxable earnings for Social Security are based on the first $ 106,800. Taxable earnings for Medicare are based on all earnings. Taxable earnings for federal and state unemployment are based on the first $ 7,000.
Required
1. Complete the payroll register using the wage- bracket income tax withholding table in Figure. The Social Security tax rate is 4.2 percent, and the Medicare tax rate is 1.45 percent. Assume that all employees are married. The federal income tax deduction is $ 260.61 for Dore, $ 208.06 for Hale, and $ 295.70 for Jilly. In the payroll register, begin payroll checks with No. 1863.
2. Prepare a general journal entry to record the payroll. The firms general ledger contains a Wages Expense account and a Wages Payable account.
3. Assuming that the firm has transferred funds from its regular bank account to its special payroll bank account and that this entry has been made, prepare a general journal entry to record the payment ofwages.
Step by Step Answer:
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille