Continuing Payroll Problem, 6A: Chapter 6

You have almost completed the Kipley Company's Employee Payroll Register for the pay period ending January 8, 20--.

In this last task, the following steps will be completed.

Requirements:

1. Record the deduction for group insurance.
2. Record the health insurance deduction.
3. Record the check number assigned to each employee.
4. Compute and record the net pay for each employee.
5. Total the input columns on the Employee Payroll register.
6. On Employer Register, enter total gross earnings.
7. Prepare the journal entries as of January 12 to record the payroll and the payroll taxes for the week ending January 8. Credit Salaries Payable for the total net pay.
8. Prepare the journal entry to record the payment of the payroll on January 14 when the paychecks are distributed to all workers.

   Employee Benefits

   The table below lists the employee contributions to Group Insurance and Health Insurance. Also, a check number has been assigned to each employee. Note that some employees are not yet eligible for Group Insurance coverage under the company plan.

   KIPLEY COMPANY, INC. Insurance Deduction Register
   Name	GRP. INS.	HEALTH INS.	CK. NO.
   Carson, F.	$0.85	$1.65	313
   Wilson, W.	0.85	1.65	314
   Utley, H.	0.85	1.65	315
   Fife, L.	0.85	1.65	316
   Smith, L.		1.65	317
   Fay, G.	0.85	1.65	318
   Robey, G.	0.85	1.65	319
   Schork, T.		1.65	320
   Hardy, B.	0.85	1.65	321
   Kipley, C.	0.85	1.65	322

   Completing the Payroll Register

   The Employee Payroll Register presents all the computations previously performed as it applies to this payroll period.

   Complete the following steps (if a field should be blank, leave it blank):

9. Record the amount to be withheld for group insurance.
10. Record the amount to be withheld for health insurance.
11. Each worker is to be paid by check. Assign check numbers provided to the correct employee.
12. Compute the net pay for each employee.
13. Total the input columns.

14. KIPLEY COMPANY, INC. Payroll Register For Period Ending January 8, 20--
    	EARNINGS	DEDUCTIONS									NET PAY
    Name	Gross	OASDI	HI	FIT	SIT	SUTA	CIT	SIMPLE	Grp. Ins.	Health Ins.	Ck. No.	Amount
    Carson, F.	$700.00	$43.40	$10.15	$60.00	$21.49	$0.42	$21.00	$20.00	$	$		$
    Wilson, W.	897.04	55.62	13.01	91.00	27.54	0.54	26.91	50.00
    Utley, H.	678.75	42.08	9.84	25.00	20.84	0.41	20.36	40.00
    Fife, L.	877.10	54.38	12.72	28.00	26.93	0.53	26.31	50.00
    Smith, L.	790.00	48.98	11.46	61.00	24.25	0.47	23.70	20.00
    Fay, G.	539.15	33.43	7.82	3.00	16.55	0.32	16.17	40.00
    Robey, G.	623.08	38.63	9.03	---	19.13	0.37	18.69	50.00
    Schork, T.	773.08	47.93	11.21	64.00	23.73	0.46	23.19	60.00
    Hardy, B.	666.11	41.30	9.66	1.00	20.45	0.40	19.98	30.00
    Kipley, C	1,000.00	62.00	14.50	13.00	30.70	0.60	30.00	80.00
    Totals	$	$467.75	$109.40	$346.00	$231.61	$4.52	$226.31	$440.00	$	$	----	$

Taxable Earnings

The employer's taxes have been calculated on the Totals row of Taxable Earnings in Chapters 3 and 5 using the following rates:

1. OASDI at 6.2% on the first $132,900 HI at 1.45% on total earnings FUTA at 0.6% on the first $7,000 SUTA at 3.6890% on the first $10,000

Enter the Employer's total payroll taxes for the pay period ending January 8, 20--.

KIPLEY COMPANY, INC. Taxable Earnings Payroll Taxes
	Taxable Earnings	Payroll Taxes	OASDI	HI	FUTA	SUTA
Totals	$7,544.31	$	$467.75	$109.39	$45.27	$278.3

Journal Entry: Recording Payroll

Complete the following:

Prepare the journal entries as of January 12 to record the payroll and the payroll taxes for the week ending January 8. Credit Salaries Payable for the total net pay.

Date	Account	Debit	Credit
20-- Jan. 12	Wages and Salaries Expense
	FICA Taxes Payable-OASDI
	FICA Taxes Payable-HI
	Employees FIT Payable
	Employees SIT Payable
	Employees SUTA Payable
	Employees CIT Payable
	Simple Deductions Payable
	Group Insurance Premiums Collected
	Health Insurance Premiums Collected
	Salaries Payable
	To record payroll.
20-- Jan. 12	Payroll Taxes Expense
	FICA Taxes Payable-OASDI
	FICA Taxes Payable-HI
	FUTA Taxes Payable
	SUTA Taxes Payable
	To record payroll taxes.

Journal Entry: Payroll Distribution

Complete the following:

Prepare the journal entry to record the payment of the payroll on January 14 when the paychecks are distributed to all workers.

Date	Account	Debit	Credit
20-- Jan. 14	Salaries Payable
	Cash