Below is a payroll sheet for Otis Import Company for the month of September 2014

Question

Below is a payroll sheet for Otis Import Company for the month of September 2014. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $113,700. In addition, 1.45% is charged both employer and employee for an employee’s wages in excess of $113,700 per employee.

(a)

Unemployment Tax

Name

Earnings
to Aug. 31

September
Earnings

Income Tax
Withholding

FICA

State

Federal

Account Titles and Explanation

Debit

Credit

Open Show Work

Below is a payroll sheet for Otis Import Company for the month of September 2014. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $113,700. In addition, 1.45% is charged both employer and employee for an employee’s wages in excess of $113,700 per employee.

Explanation / Answer

(a)

(b)

Payroll withholdings include:

In addition to salaries and wages, the employer will incur some or all of the following payroll-related expenses:

A B C F G Net Payroll Earnings September Income Tax FICA ($) Unemployment Tax ($) payable ($) Name to Aug. 31 ($) Earnings ($) Withholding ($) 7.65% State Federal (A+B-C-E) B.D. Williams        6,520.00           800.00               732.00       559.98       73.20       58.56         6,028.02 D. Raye        6,460.00           700.00               716.00       547.74       71.60       57.28         5,896.26 K. Baker        7,520.00        1,200.00               872.00       667.08       87.20       69.76         7,180.92 F. Lopez      13,800.00        1,800.00            1,560.00    1,193.40     156.00     124.80       12,846.60 A. Daniels 1,08,000.00       12,100.00           12,010.00    8,790.85 1,201.00     960.80       99,299.15 B. Kingston 1,12,590.00       17,800.00           13,039.00    8,940.06 1,303.90 1,043.12 1,08,410.95 Total 2,54,890.00       34,400.00           28,929.00 20,699.11 2,892.90 2,314.32 2,39,661.90

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.