Alvamar Company has the following data for the weekly payroll ending January 31.
|
Hours |
||||||
|
Employee |
M |
T |
W |
T |
F |
S |
|
M. Hashmi |
8 |
8 |
9 |
8 |
10 |
3 |
|
E. Benson |
8 |
8 |
8 |
8 |
8 |
2 |
|
K. Kern |
9 |
10 |
8 |
8 |
9 |
0 |
|
Hourly Rate |
Federal Income Tax Withholding |
Health Insurance |
|
$12 |
$34 |
$10 |
|
13 |
37 |
25 |
|
15 |
58 |
25 |
Employees are paid 11/2 times the regular hourly rate for all hours worked in excess of 40 hours per week. FICA taxes are 8% on the first $100,000 of gross earnings. Alvamar Company is subject to 5.4% state unemployment taxes and 0.8% federal unemployment taxes on the first $7,000 of gross earnings. Instructions
(a) Prepare the payroll register for the weekly payroll.
(b) Prepare the journal entries to record the payroll and Alvamar’s payroll tax expense.