Ralph's Hardware has four employees who are paid on an hourly basis plus timeand-a half for all hours worked in excess of 40 a week. Payroll data for the week ended March 15, 2017, are presented below.

Litwack and Burgess are married. They claim 1 and 3 withholding allowances, respectively. The following tax rates are applicable: FICA 7.65% on all wages, state income taxes 4.5%, state unemployment taxes 5.4%, and federal unemployment 0.8%.
Instructions
(a) Prepare a payroll register for the weekly payroll. (Use the wage-bracket withholding table in Illustration I-5 on page I-4 for federal income tax withholdings.)
(b) Journalize the payroll on March 15, 2017, and the accrual of employer payroll taxes.
(c) Journalize the payment of the payroll on March 16, 2017.
(d) Journalize the deposit in a Federal Reserve bank on March 31, 2017, of the FICA and federal income taxes payable to the government.

Transcribed Image Text:

Federal Income Tax Withholdings United Fund S5 Hourly Rate Employee K. Litwack E. Burgess R. Perez H. Hosseini Hours Worked 40 46 13 13 13 60 67 48