Lee Hardware has four employees who are paid on an hourly basis plus time and a half for all hours worked in excess of 40 a week. Payroll data for the week ended March 15, 2011, are presented below.
|
Federal |
||||
|
Hours |
Hourly |
Income Tax |
United |
|
|
Employee |
Worked |
Rate |
Withholdings |
Way |
|
Joe Coomer |
40 |
$15.00 |
$? |
$5.00 |
|
Mary Walker |
42 |
13.00 |
? |
5.00 |
|
Andy Dye |
44 |
13.00 |
60 |
8.00 |
|
Kim Shen |
48 |
13.00 |
67 |
5.00 |
Coomer and Walker are married. They claim 0 and 4 withholding allowances, respectively. The following tax rates are applicable: FICA 8%, state income taxes 3%, state unemployment taxes 5.4%, and federal unemployment 0.8%. The first three employees are sales clerks (store wages expense). The fourth employee performs administrative duties (office wages expense).
Instructions
(a) Prepare a payroll register for the weekly payroll. (Use the wage bracket withholding table in the text for federal income tax withholdings.)
(b) Journalize the payroll on March 15, 2011, and the accrual of employer payroll taxes.
(c) Journalize the payment of the payroll on March 16, 2011.
(d) Journalize the deposit in a Federal Reserve bank on March 31, 2011, of the FICA and federal income taxes payable to the government.