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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