Continuing Payroll Problem, 6B: Chapter 6

You have almost completed the Olney 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 the 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.

OLNEY COMPANY, INC. Insurance Deduction Register
Name	GRP. INS.	HEALTH INS.	CK. NO.
Mangino, R.	$0.85	$1.65	313
Flores, I.	0.85	1.65	314
Palmetto, C.		1.65	315
Waters, R.	0.85	1.65	316
Kroll, C.	0.85	1.65	317
Ruppert, C.	0.85	1.65	318
Scott, W.	0.85	1.65	319
Wickman, S.		1.65	320
Foley, L.	0.85	1.65	321
Olney, M.	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:

1. Record the amount to be withheld for group insurance.
2. Record the amount to be withheld for health insurance.
3. Each worker is to be paid by check. Assign check numbers provided to the correct employee.
4. Compute the net pay for each employee.
5. Total the input columns.

OLNEY 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
Mangino, R.	$740.00	$45.88	$10.73	$64.00	$22.72	$0.44	$7.40	$20.00	$	$		$
Flores, I.	1,058.80	65.65	15.35	127.00	32.51	0.64	10.59	50.00
Palmetto, C.	685.30	42.49	9.94	26.00	21.04	0.41	6.85	40.00
Waters, R.	1,045.35	64.81	15.16	54.00	32.09	0.63	10.45	60.00
Kroll, C.	952.00	59.02	13.80	80.00	29.23	0.57	9.52	20.00
Ruppert, C.	837.50	51.93	12.14	32.00	25.71	0.50	8.38	40.00
Scott, W.	780.00	48.36	11.31	18.00	23.95	0.47	7.80	50.00
Wickman, S.	807.69	50.08	11.71	69.00	24.80	0.48	8.08	50.00
Foley, L.	1,233.16	76.46	17.88	61.00	37.86	0.74	12.33	30.00
Olney, M.	1,500.00	93.00	21.75	68.00	46.05	0.90	15.00	80.00
Totals	$	$597.68	$139.77	599.00	$295.96	$5.78	$96.40	$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--.

OLNEY COMPANY, INC. Taxable Earnings Payroll Taxes
	Taxable Earnings	Payroll Taxes	OASDI	HI	FUTA	SUTA
Totals	$9,639.80	$	$597.67	$139.78	$57.84	$355.61

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
	To record payroll.
20-- Jan. 12
	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