Assume during the quarter ending December 31 of the current year, Matson Office Systems had 13 weekly paydays and three monthly paydays. The names of the employees of Matson Office Systems and their regular salaries are shown in the following payroll register. Note that Wayne and Young are paid monthly on the last payday, while all others are paid weekly.
Employee Name |
Marital
Status |
No. of W/H
Allowances |
Regular
Earnings |
| Wayne, Bret |
M |
5 |
$4,200* |
| Young, Gina |
M |
2 |
4,150* |
| Course, Rudy |
S |
1 |
810 |
| Dickson, Emile |
M |
4 |
715 |
| Woodrow, Walt |
M |
2 |
695 |
| Noblet, Jim |
S |
1 |
525 |
| Ono, Joan |
M |
2 |
800 |
| Jones, Carrie |
S |
0 |
645 |
*Monthly
In addition to the regular salaries, the company pays an annual bonus based on the amount of earnings for the year. For the current year, the bonus amounts to 8% of the annual salary paid to each employee. The bonus is to be paid along with the regular salaries on December 31, but the amount of the bonus and the amount of the regular salary will be shown separately on each employee's earnings statement. Assume that all employees received their regular salary during the entire year.
For the payroll for the pay period ending December 31:
- Use the wage-bracket method to withhold federal income tax from the regular salaries.
- Withhold a flat 25% on the annual bonus.
- Total salaries and bonuses are subject to a 2% state income tax and a 1% city income tax.
Complete the following table to show:
a. Total earnings paid during the quarter, including both the regular and the supplemental earnings.
b. Total amount of FICA taxes withheld during the quarter.
c. Total amount of federal income taxes withheld during the quarter.
d. Total amount of state income taxes withheld during the quarter.
e. Total amount of city income taxes withheld during the quarter.
f. Total net amount paid each employee during the quarter.
When computing withholding, use the total earnings for the quarter. To compute federal withholding, figure withholding for one pay period and multiply by the number of paydays in the quarter. Round final answers to nearest cent. Enter all amounts as positive numbers.