Note: In this chapter and in all succeeding work throughout the course, unless i

Question

Note: In this chapter and in all succeeding work throughout the course, unless instructed otherwise, calculate hourly rates and overtime rates as follows:

Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.

Vulcra, Inc., has a semimonthly payroll of $67,000 on September 15. The total payroll is taxable under FICA Taxes-HI; $63,850 is taxable under FICA Taxes-OASDI; and $10,300 is taxable under FUTA and SUTA. The state contribution rate for the company is 4.1%. The amount withheld for federal income taxes is $9,911. The amount withheld for state income taxes is $1,410.

a. Journalize the payment of the wages, and record the payroll taxes on September 15.

If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.

can someone explaine to me how to get the payroll Taxes

1. Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the over-time rate). 2. If the third decimal place is 5 or more, round to the next higher cent. 3. If the third decimal place is less than 5, simply drop the third decimal place. Examples: Monthly rate $1,827
Weekly rate ($1,827 × 12)/52 = $421.615 rounded to $421.62
Hourly rate $421.62/40 = $10.540 rounded to $10.54
O.T. rate $10.54 × 1.5 = $15.81

Explanation / Answer

Account Debit Credit Hint Payment of wages Wages $ 67,000.00 FICA Taxes Payable-OASDI $   3,958.70 =63850*6.2% FICA Taxes Payable-HI $      971.50 =67000*1.45% Employees FIT Payable $   9,911.00 Given Employees SIT Payable $   1,410.00 Given Cash $ 50,748.80 Balance                 Payroll taxes Payroll Taxes $   5,414.30 FICA Taxes Payable-OASDI $   3,958.70 FICA Taxes Payable-HI $      971.50 FUTA Taxes Payable $        61.80 =10300*0.6% SUTA Taxes Payable $      422.30 =10300*4.1%

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