Ramirez Company has the following data for the weekly payroll ending January 31.
|
Hours |
|||||||||
|
Employee |
M |
T |
W |
T |
F |
S |
Hourly Rate |
Federal Income Tax Withholding |
Health Insurance |
|
L.Hurl |
8 |
8 |
9 |
8 |
10 |
3 |
$12 |
$34 |
$10 |
|
R.Kebts |
8 |
8 |
8 |
8 |
8 |
2 |
14 |
37 |
25 |
|
D.Avatras |
9 |
10 |
8 |
8 |
9 |
0 |
15 |
58 |
25 |
Employees are paid 1½ times the regular hourly rate for all hours worked in excess of 40 hours per week. FICA taxes are 7.65% on the first $110,100 of gross earnings. Ramirez 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 Ramirez”s payroll tax expense.