For the year ended December 31, 2010, R. Vishal Company reports the following summary payroll data:
|
Gross earnings |
|
|
Administrative salaries |
$180,000 |
|
Electricians’ wages |
320,000 |
|
Total |
$500,000 |
|
|
|
|
Deductions |
|
|
FICA taxes |
$35,200 |
|
Federal income taxes withheld |
153,000 |
|
State income taxes withheld (2.6%) |
13,000 |
|
United Fund contributions payable |
25,000 |
|
*Hospital insurance premiums |
15,800 |
|
Total |
$242,000 |
R. Vishal Company’s payroll taxes are FICA 8 percent, state unemployment 2.5 percent (due to a stable employment record), and federal unemployment 0.8 percent. Gross earnings subject to FICA taxes total $440,000, and unemployment taxes total $110,000.
|
Wages, Tips, |
Federal Income |
State Income |
FICA |
FICA Tax |
|
Other Compensation |
Tax Withheld |
Tax Withheld |
Wages |
Withheld |
Complete the required data for the following employees:
|
Employee |
Gross Earnings |
Federal Income Tax Withheld |
|
R. Lopez |
$60,000 |
$27,500 |
|
K. Kirk |
27,000 |
11,000 |