8. The Lopez Corp. has four employees. Information from 2020 for those four employees is shown below: 

Employee\ Earnings prior to November\ November Earnings\ Federal Withholding %\ State Withholding %\ Employee Retirement Contribution %\ Avila\ $64,000\ $8,000\ 35%\ 7%\ 8%\ Lemon\ $172,000\ $12,000\ 35%\ 7%\ 10%\ Rosen\ $22,000\ $5,000\ 20%\ 4%\ 4%\ Wertz\ $7,000\ $2,600\ 20%\ 4%\ 5%. 

Additional Information:  All employees are full-time employees except Wertz.  The FICA tax rate is 7.65%, made up of the social security tax rate of 6.2% and the Medicare tax rate of 1.45%. The 2020 annual cap related to the social security portion of FICA is $137,700.  The federal unemployment tax rate is 6% and the state unemployment tax rate (SUTA) for Lopez Corp. is 1.3%. The cap related to unemployment taxes federally is $7,000 and in Lopezs state is $9,000, and all companies in Lopezs state are given a 5.4% FUTA credit.  Lopezs employee retirement plan calls for Lopez to match any full-time employees contributions to the retirement plan up to a maximum of a 5% match.  Lopezs health insurance plan calls for Lopez to pay the full $400 per month health insurance premium on each full-time employee. 

Required: 

Using the Excel template provided:

 a. Prepare a payroll schedule in Excel for Lopez that shows for each employee: 

i. November Earnings

ii. Federal Withholding 

iii. State Withholding

iv. Social Security

 v. Medicare

 vi. Retirement Contribution 

vii. Net Pay 

b. Prepare a payroll schedule for Lopez that shows for each employee, the employers:

i. Social Security match 

ii. Medicare match 

iii. FUTA tax\ iv. SUTA tax

v. Retirement Contribution match

vi. Health care contribution

c. Make the necessary entry for Lopez to record the November 30 payment of its payroll. 

d. Make the necessary entry for Lopez to record the November 30 accrual of any payroll-related taxes and contributions it has to make.

Answer rating: 100% (QA)

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