Mann Hardware has four employees who are paid on an hourly basis plus time-and-ahalf for all hours worked in excess of 40 a week. Payroll data for the week ended March 15, 2020, are presented below.

Abel and Hager are married. They claim 0 and 4 withholding allowances, respectively. The following tax rates are applicable: FICA 7.65%, state income taxes 3%, 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 the text for federal income tax withholdings.)

b. Journalize the payroll on March 15, 2020, and the accrual of employer payroll taxes.

c. Journalize the payment of the payroll on March 16, 2020.

d. Journalize the deposit in a Federal Reserve bank on March 31, 2020, of the FICA and federal income taxes payable to the government.

Transcribed Image Text:

Federal Hours United Hourly Rate Income Tax Employee Withholdings $ ? Worked Fund Ben Abel 40 $15.00 $5.00 Rita Hager 42 16.00 ? 5.00 Jack Never 44 13.00 60.00 8.00 Sue Perez 46 13.00 61.00 5.00