Payroll Tax Entries
Not what you're looking for?
I need to double check my answers with a professional. Thank you. Please see attached.
Allison Hardware Company's payroll for November 2010 is summarized below.
Amount Subject to Payroll Taxes
Unemployment Tax
Payroll Wages Due F.I.C.A Federal State
Factory $140,000 $140,000 $40,000 $40,000
Sales 32,000 32,000 4,000 4,000
Administrative 36,000 36,000 ----- -----
Total $208,000 $208,000 $44,000 $44,000
At this point in the year some emplyees have already received wages in excess of those to which payroll
taxes apply. Assume that the state unemployment tax is 2.5%. The F.I.C.A. rate is 7.65% on an employee's
wages to $102,000 and 1.45% in excess of $102,000. Of the $208,000 wages subject to F.I.C.A. tax, $20,000
of the sales wages is in excess of $102,000. Federal unemployment tax rate is 0.8% after credits. Income
tax withheld amounts to $16,000 for factory, $7,000 for sales, and $6,000 for administrative.
Instructions
a. Prepare a schedule showing the employer's total cost of wages for November by function.
b. Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer's payroll taxes.
Purchase this Solution
Solution Summary
The solution explains how to calculate the record payroll tax entries
Purchase this Solution
Free BrainMass Quizzes
Operations Management
This quiz tests a student's knowledge about Operations Management
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.