Joe’s Sandwich Shop 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 February 15, 2010, are presented below:
|
Employees
|
Hours Worked
|
Hourly Rate
|
Federal Income Tax Withholdings |
United Fund
|
|
L. Leis |
39 |
$14.00 |
$ ? |
$ — |
|
S. Bjork |
42 |
$12.00 |
? |
5.00 |
|
M. Cape |
44 |
$12.00 |
61 |
7.50 |
|
L. Wild |
48 |
$12.00 |
52 |
5.00 |
Leis and Bjork are married. They claim two and four withholding allowances, respectively. The following tax rates are applicable: FICA 8 percent, state income taxes 3 percent, state unemployment taxes 5.4 percent, and federal unemployment taxes 0.8 percent. The first three employees are sales clerks (store wage 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 February 15, 2010, and the accrual of employer payroll taxes.
(c) Journalize the payment of the payroll on February 16, 2010.
(d) Journalize the deposit in a Federal Reserve Bank on February 28, 2010, of the FICA and federal income taxes payable to the government.