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

The W-2 is the Wage and Tax Statement.

Mike's Door Service's payroll data for the second week of June included the following: Taxable earnings for state unemployment taxes: $2,000 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 for Mike's for the second week of June.

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

Sweeney's Recording Studio payroll records show the following information: Assume the following: a) FICA: OASDI, 6.2% on a limit of $128,400; Medicare, 1.45%. b) Each employee contributes $40 per week for union dues. c) State income tax is 5% of gross pay. d) Federal income tax is 20% of gross pay. Prepare a general journal payroll entry: for the payment of the above weekly salary only.

Form SS-4 is:

Using the information provided below, prepare a journal entry to record the payroll tax expense for Mr. B's Carpentry. Assume: FICA tax rates are: OASDI 6.2% on a limit of $128,400 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.

An employer must always use a calendar year for payroll purposes.

The employer's annual Federal Unemployment Tax Return is:

Prepare the general journal entry to record the employer's payroll tax expense. ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________

Prepare the general journal entry to record the payroll. ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________

What liability account is reduced when the employees are paid?

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 employer records deductions from the employee's paycheck:

Ben's Mentoring had the following information for the pay period ending September 30: Assume: FICA-OASDI applied to the first $128,400 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 net pay.

A calendar quarter is made up of:

Wages and Salaries Payable would be used to record:

Prepare the general journal entry to record the payroll. ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________

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). -

Grammy's Bakery had the following information before the pay period ending June 30: Assume: Each hourly employee is paid 1-1/2 times pay rate for time worked in excess of 40 hours. FICA-OASDI applied to the first $128,400 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%. Given the above information, what would be the amount applied to Kitchen Salaries Expense?

Ben's Mentoring had the following information for the pay period ending September 30: Assume: FICA-OASDI applied to the first $128,400 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 overtime earnings.