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    Calculations for the Weekly Payroll of the Piniella Company

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    Piniella Company company has the following data for the weekly payroll ending January 31.

    Hours Hourly Federal Income Tax Health
    M T W T F S Rate Withholding Insurance
    Employees
    M. Hindi 8 8 9 8 10 3 $11 $34 $10
    E. Benson 8 8 8 8 8 2 $13 $37 $15
    K. Estes 9 10 8 8 9 0 $14 $58 $15

    Employees are paid 1½ times the regular hourly rate for all hours worked in excess of 40 hours per week. FICA taxes are 8% on the first $106,800 of gross earnings. Piniella Company is subject to 5.4% state unemployment taxes on the first $9,800 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 Piniella's payroll tax expense.

    © BrainMass Inc. brainmass.com October 10, 2019, 2:59 am ad1c9bdddf
    https://brainmass.com/business/journal-entries/402770

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    Solution Summary

    Piniella Company company has the following data for the weekly payroll ending January 31.

    Hours Hourly Federal Income Tax Health
    M T W T F S Rate Withholding Insurance
    Employees
    M. Hindi 8 8 9 8 10 3 $11 $34 $10
    E. Benson 8 8 8 8 8 2 $13 $37 $15
    K. Estes 9 10 8 8 9 0 $14 $58 $15

    Employees are paid 1½ times the regular hourly rate for all hours worked in excess of 40 hours per week. FICA taxes are 8% on the first $106,800 of gross earnings. Piniella Company is subject to 5.4% state unemployment taxes on the first $9,800 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 Piniella's payroll tax expense.

    $2.19