Exam 8: Paying,recording,and Reporting Payroll and Payroll Taxes:

Plymouth Sharks Hockey Accessories had the following transactions involving the sale of merchandise.You are to prepare the necessary general journal entries.All sales are subject to a 6% sales tax and have a 2/10,n/30 discount terms. December 2 $\quad$ Sold merchandise priced at $\$ 100$ to Cathy Norton on account. December 4 $\quad$ Sold merchandise priced at $\$ 125$ to a cash customer. Decem ber 10 $\quad$ Payment from Cathy Norton received. Decem ber 16 $\quad$ Cash customer returned $\$ 40$ worth of merchandise. -Wages and Salaries Payable would be used to record:

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2) Employee Name Pay Rate Hours Cumulative Department Federal Income Worked Tax Withheld B. Woodard \ 2,000/ wk Salaried \ 98,000 Office \ 779.00 J. Thomas 13.00 51 40,000 Shop 320.00 K. McCann 17.00 46 42,000 Shop 330.00 Assume: FICA-OASDI is 6.2% based on a limit of $117,000. FICA-Medicare is 1.45%. FUTA is .8% based on a limit of $7,000. SUTA is 5.6% based on a limit of $7,000. State income tax is 2.8%. -How often is a 940 filed?

The information needed to make the journal entries to record the wages and salaries expense comes from:

There is a limit on the amount of taxes paid for SUTA.

Which form contains information about gross earnings and is given to the employee by January 31?

Kristi's Mentoring had the following information for the pay period ending September 30: Assume: FICA-OASDI applied to the first $117,000 at a rate of 6.2%. FICA-Medicare applied at a rate of 1.45%. FUTA applied to the first $7,000 at a rate of 0.8%. SUTA applied to the first $7,000 at a rate of 5.6%. State income tax is 3.8%. Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings. -Prepare the general journal entry to record the payment to the Federal Treasury. ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________

Kristi's Mentoring had the following information for the pay period ending September 30: Assume: FICA-OASDI applied to the first $117,000 at a rate of 6.2%. FICA-Medicare applied at a rate of 1.45%. FUTA applied to the first $7,000 at a rate of 0.8%. SUTA applied to the first $7,000 at a rate of 5.6%. State income tax is 3.8%. Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings. -Compute the total employer's payroll tax.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). - Column 1 Column 2 Column 3 Column 4 SUTA Payable

Both employer and employee contribute to FICA-OASDI and SUTA tax.

The following amounts are an expense to the company except:

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2) Employee Name Pay Rate Hours Cumulative Department Federal Income Worked Tax Withheld B. Woodard \ 2,000/ wk Salaried \ 98,000 Office \ 779.00 J. Thomas 13.00 51 40,000 Shop 320.00 K. McCann 17.00 46 42,000 Shop 330.00 Assume: FICA-OASDI is 6.2% based on a limit of $117,000. FICA-Medicare is 1.45%. FUTA is .8% based on a limit of $7,000. SUTA is 5.6% based on a limit of $7,000. State income tax is 2.8%. -Compute the employer's payroll tax.

The W-3 is filed only for odd years.

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2) Employee Name Pay Rate Hours Cumulative Department Federal Income Worked Tax Withheld B. Woodard \ 2,000/ wk Salaried \ 98,000 Office \ 779.00 J. Thomas 13.00 51 40,000 Shop 320.00 K. McCann 17.00 46 42,000 Shop 330.00 Assume: FICA-OASDI is 6.2% based on a limit of $117,000. FICA-Medicare is 1.45%. FUTA is .8% based on a limit of $7,000. SUTA is 5.6% based on a limit of $7,000. State income tax is 2.8%. -Which of the following does NOT apply to both a W-2 and W-3?

Mike's Door Service's payroll data for the second week of June included the following: Assume the following tax rates: FICA-OASDI 6.2\% FICA-Medicare 1.45\% State unemployment 1.5\% Federal unemployment 0.06\% Required: Prepare the payroll tax expense entry.

Record in the general journal the payroll tax entry for the week ended August 31.Use the following information gathered to make the entry. a)FICA tax rate is: OASDI 6.2% on a limit of $106,800,and Medicare is 1.45% b)Federal Unemployment is 0.8% on a limit of $7,000 c)State Unemployment is 2% on a limit of $7,000

The employer records deductions from the employee's paycheck:

What type of account is Payroll Tax Expense?

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2) Employee Name Pay Rate Hours Cumulative Department Federal Income Worked Tax Withheld B. Woodard \ 2,000/ wk Salaried \ 98,000 Office \ 779.00 J. Thomas 13.00 51 40,000 Shop 320.00 K. McCann 17.00 46 42,000 Shop 330.00 Assume: FICA-OASDI is 6.2% based on a limit of $117,000. FICA-Medicare is 1.45%. FUTA is .8% based on a limit of $7,000. SUTA is 5.6% based on a limit of $7,000. State income tax is 2.8%. -Compute the total regular earnings.

Which form is sent to the Social Security Administration along with the W-2s? It reports total wages,FICA tax withheld,etc. ,for the previous year.

The W-3 is also known as the Transmittal of Wage and Tax Statements.