Learning Objective ve2 E1120 Recording employee and employer

Learning Objective ve2 E11-20 Recording employee and employer paroll taxes County Company had the following partially completed payroll register: 2. Salaries & Wages Payable $15,923.20 Earnings Withholdings Beginning Current Ending Net Ched Cumulative Period Cumulative Income Health United Total Earnings Earnings EarningsOASDI Medicare Tax Insurance Way Withholdings Pay 801 77,000 4,500 112,000 7,200 48,000 3,300 61,000 3,300 0 4,500 298,000 22,800 $ 900 $ 90 $ 15 35 802 803 804 144 1,200 600 850 1,100 66 20 90 805 $4,650 $456 $70

Solution

A B C D E Beginning Current period Ending cumulative Max limit D-A or B Cumulative earnings Earnings Earnings For OADSI Whichever lower 77000 4500 81500 118500 4500 112000 7200 119200 118500 6500 48000 3300 51300 118500 3300 61000 3300 64300 118500 3300 0 4500 4500 118500 4500 22800 6.2%*E 1.45%*B Total OADSI Medicare Income tax Health insurance United way Withholdings 279 65.25 900 90 15 1349.25 403 104.4 1200 144 35 1886.4 204.6 47.85 600 66 0 918.45 204.6 47.85 850 66 20 1188.45 279 65.25 1100 90 1534.25 1370.2 330.6 4650 456 70 6876.8 Net pay Check no. Salaries and wages expense 3150.75 801 4500 5313.6 802 7200 2381.55 803 3300 2111.55 804 3300 2965.75 805 4500 15923.2 22800 2 Salaries and wages expense 22800                     OADSI payable 1370.2                     Medicare payable 330.6                     Income tax payable 4650                     Health insurance payable 456                     United way payable 70                     Salaries and wages payable 15923.2 3 Payroll tax expense 1700.8                     OADSI payable 1370.2                     Medicare payable 330.6 4 Salaries and wages payable 15923.2                    Cash 15923.2 5 OADSI payable 2740.4 Medicare payable 661.2 Income tax payable 4650 Health insurance payable 456 United way payable 70                  Cash 8577.6