Use the following tax rates: FICAEmployer and employee, 8% of the first $120,000 of earnings per employee
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Question:
Use the following tax rates:
FICA–Employer and employee, 8% of the first $120,000 of earnings per employee per calendar year.
State unemployment–4% of the first $8,000 of earnings per employee per calendar year.
Federal unemployment–1% of the first $8,000 of earnings per employee per calendar year.
Federal income tax withholding–10% of each employee’s gross earnings, unless otherwise stated.
Recording payroll
Using the earnings data developed in E3-1 and assuming that this was the first week of employment for R. Herbert with Crestview Manufacturing Co., prepare the journal entries for the following:
a. The week’s payroll.
b. Payment of the payroll.
Related Book For
Introduction to Governmental and Not for Profit Accounting
ISBN: 978-0132776011
7th edition
Authors: Martin Ives, Terry K. Patton, Suesan R. Patton
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