Question: I need help to answer the following problems I've provided below: Problem #1: Use the percentage method to compute the federal income tax to be
I need help to answer the following problems I've provided below:
Problem #1:
Use the percentage method to compute the federal income tax to be withheld from each employee.
Anderson, J. --> Marital Status = Married / Withholding allowances = 5 / Gross Wages = $1,500 Weekly
Banks, M. --> Marital Status = Married / Withholding Allowances = 0 / Gross Wages = $750 Bi-Weekly
Carter, D. --> Marital Status = Single / Withholding Allowances = 2 / Gross Wages = $10,630 Quarterly
Davis, L. --> Marital Status = Married / Withholding Allowances = 3 / Gross Wages = $800 Semi-Monthly
Harris, K. --> Marital Status = Single / Withholding Allowances = 0 / Gross Wages = $1,000 Weekly
Justice, M. --> Marital Status = Single / Withholding Allowances = 2 / Gross wages = $500 Weekly
Problem #2:
ABC Company employs the following individuals:
-A. Dotson (President) $100,000
-Annual T. Smith (Vice-President) $5,000 Monthly
-S. Johnson (Sales) $2,000 Semi-Monthly
-D. Grady (Sales) $1,000 Weekly
-S. Smith (Clerk) $500 Bi-Weekly
The company is required to contribute 0.8% on the first $7,000 for each employee for FUTA Taxes, and 3.5% on the first $8,000 for each employee for SUTA Taxes. Calculate the total amount for FUTA and SUTA Taxes for the Feb. 14 Semi-Monthly pay period. (Third Semi-Monthly Pay Period of the Year.)
Problem #3:
John Doe is the owner and sole employee of XYZ Limited. He pays himself a weekly salary of $1,750. The following deductions are taken from his weekly pay:
FICA - OASDI
FICA - HI
Federal Income Tax: $215
State Income Tax: 25% of Federal.
FUTA
SUTA: 3.5% of the first $8,000.
401-K Plan: 5%
- Record the Journal Entry for the Weekly Payroll for January 30. (Year-ToDate Pay $5,250.)
- Record the Journal Entry for the Payroll Taxes on January 30.
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