Exam 8: Paying,recording,and Reporting Payroll and Payroll Taxes: The Conclusion of the Payroll Process

Kristi's Mentoring had the following information for the pay period ending September 30: Employee Name T. Hill V. Chandler M. Hill Pay rate \ 4,500 12.00 13.00 Hours worked Salaried 48 43 Cumulative earnings \ 103,000 51,000 5,200 Department Office Tutor Tutor Federal income tax withheld \ 2,000.00 215.00 208.00 Assume: FICA-OASDI applied to the first $106,800 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 federal income tax.________

A deposit must be made when filing the W-3 form.

Kristi's Mentoring had the following information for the pay period ending September 30: Employee Name T. Hill V. Chandler M. Hill Pay rate \ 4,500 12.00 13.00 Hours worked Salaried 48 43 Cumulative earnings \ 103,000 51,000 5,200 Department Office Tutor Tutor Federal income tax withheld \ 2,000.00 215.00 208.00 Assume: FICA-OASDI applied to the first $106,800 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 gross earnings for the office._________

Kristi's Mentoring had the following information for the pay period ending September 30: Employee Name T. Hill V. Chandler M. Hill Pay rate \ 4,500 12.00 13.00 Hours worked Salaried 48 43 Cumulative earnings \ 103,000 51,000 5,200 Department Office Tutor Tutor Federal income tax withheld \ 2,000.00 215.00 208.00 Assume: FICA-OASDI applied to the first $106,800 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 deductions.________

A monthly depositor:

Using the information provided below,prepare a journal entry to record the payroll tax expense for Mr.B's Carpentry. Employee Gross Pay Cumulative Earring Prior to this Payroll V. Vaughn \ 1,600 \ 44,000 C. Jefferson 1,200 7,000 B. Hogan 1,400 120,000 Assume: FICA tax rates are: OASDI 6.2% on a limit of $106,800 and Medicare 1.45% State unemployment tax rate is 2% on the first $7,000 Federal unemployment tax rate is 0.8% on the first $7,000.

The look-back period is used to determine whether:

The W-3 is also known as the Transmittal of Income and Tax Statement.

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 $\frac{1}{2}$ ) Employee Name B. Woodard J. Thomas K. McCann Pay Rate \ 2,000/ 13.00 17.00 Hours Worked Salaried 51 46 Cumulative \ 98,000 40,000 42,000 Department Office Shop Shop Federal Income Tax Withheld \ 779.00 320.00 330.00 Assume: FICA-OASDI is 6.2% based on a limit of $106,800 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 deductions.________

The entry to record the payroll tax expense would include:

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?

Kristi's Mentoring had the following information for the pay period ending September 30: Employee Name T. Hill V. Chandler M. Hill Pay rate \ 4,500 12.00 13.00 Hours worked Salaried 48 43 Cumulative earnings \ 103,000 51,000 5,200 Department Office Tutor Tutor Federal income tax withheld \ 2,000.00 215.00 208.00 Assume: FICA-OASDI applied to the first $106,800 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. ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________

FIT Payable has a credit normal balance.

The tax paid by the employer for both the employee and employer:

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 $\frac{1}{2}$ ) Employee Name B. Woodard J. Thomas K. McCann Pay Rate \ 2,000/ 13.00 17.00 Hours Worked Salaried 51 46 Cumulative \ 98,000 40,000 42,000 Department Office Shop Shop Federal Income Tax Withheld \ 779.00 320.00 330.00 Assume: FICA-OASDI is 6.2% based on a limit of $106,800 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 federal income tax.________

Kristi's Mentoring had the following information for the pay period ending September 30: Employee Name T. Hill V. Chandler M. Hill Pay rate \ 4,500 12.00 13.00 Hours worked Salaried 48 43 Cumulative earnings \ 103,000 51,000 5,200 Department Office Tutor Tutor Federal income tax withheld \ 2,000.00 215.00 208.00 Assume: FICA-OASDI applied to the first $106,800 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 retirement.________

Form 941 is filed:

Form 940 is used by businesses that employ workers in multiple states.

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 Payroll Cash

Why are the employee deductions recorded as payables on the employer's books?