Otto Drug Store has four employees who are paid on an hourly basis plus time-and-a-half for all
Question:
The following tax rates are applicable: FICA 7.65%, state income taxes 3%, state unemployment taxes 5.4%, and federal unemployment 0.8%. The first three employees are sales clerks (store wages expense). The fourth employee performs administrative duties (office wages expense).
Instructions
(a) Prepare a payroll register for the weekly payroll.
(b) Journalize the payroll on February 15, 2014, and the accrual of employer payroll taxes.
(c) Journalize the payment of the payroll on February 16, 2014.
(d) Journalize the remittance to the Federal Reserve bank on February 28, 2014, of the FICA and federal income taxes payable to thegovernment.
Federal United Fund Hours Hourly Income Tax Worked Rate Withholdings Contributions Employee M. Dingler D. Patel L. Grimmett A. Blv 39 42 $12.00 12.00 0.00 0.00 $34 20 51 36 10.00 5.00 5.00 46
Step by Step Answer:
a OTTO DRUG STORE Payroll Register For the Week Ended February 15 2014 Earnings Deductions Employee ...View the full answer
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
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