For all payroll calculations, use the following tax rates and round amounts to the nearest cent Employee:

Fantastic news! We've Found the answer you've been seeking!

Question:

For all payroll calculations, use the following tax rates and round amounts to the nearest cent

Employee: OASDI: 6.2% on first $118,500 earned; Medicare 1.45% up to 5200,000, 2.35% on earnings above 5200,000. Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned.

Computing bonus payable:

On December 31. Weston Company estimates that it will pay its employees a 5% bonus on net income after deducting the bonus. The company reports net income of 564.000 before the calculation of the bonus. The Bonus will be paid on January 15 of the next year.

Requirements:

1. Journalize the December 31 transaction for Weston.

2. Journalize the payment of the bonus on January 15.