Exercise 1: Calculation and journaling amounts of payroll
- Logan White is the general manager training Moonwalk Salons. In 2010, White worked for the company all year long with the monthly salary of $ 6,100. He, also he got a bonus at year-end equal to 5% of their salary.
- The federal income tax was withheld to White in 2010 was $ 810 per month plus $ 932 on your bonus check. The state income tax withheld was $ 80 per month plus $ 70 on the bonus. The tax was withheld LFCS 8% of the first $ 90,000 of annual perceptions. White authorize the following payroll deductions: a contribution to United Fund of 1% of total perceptions and $ 20 monthly for life insurance.
- Moonwalk incurred expenses payroll taxes relative to White, LFCS tax of 8% on the first $ 90,000 of annual perceptions understanding. The company will also pay state unemployment tax by 5.4% and federal unemployment tax of 0.8% on the first $ 7,000 of annual perceptions. In addition, Moonwalk gives White a medical insurance cost $ 110 per month. In 2010, Moonwalk pay $ 2,000 a retirement plan White.
Is required:
- Calculate gross pay of White, payroll deductions and net pay for the entire year of 2010. Round all amounts to the nearest dollar.
White gross pay is $ _____________
Federal Income tax: $ ______________
State Tax: $ _______________
Social Security: $ ________________
Contributions to charitable causes: $ ____________
Life insurance: ____________________
Net annual pay: $ __________________
- Calculate the total payroll expense Moonwalk for 2010 regarding White.
Social Security: $ ____________________
federal unemployment: $ ________________
state unemployment: $ _________________
- Make the journal to record spending Moonwalk for total perceptions of White in the year, payroll deductions and net pay. Make a charge to expenses for salary and bonus expenses, as appropriate. Make a credit to accounts liabilities for payroll deductions on account and net cash payment.
Exercise 2: Calculation and journaling amounts of payroll
Lee Werner is the CEO of United Tanning Salons. In 2010, Werner work for the company throughout the year with a monthly salary of $ 6,300, The, also won a year-end bonus equal to 10% of their salary.
Exercise 2
- The federal income tax withheld Werner in 2010 was $ 840 per month plus $ 925 on your bonus check. The state income tax withheld was $ 90 per month plus $ 50 on the bond. The LFCS tax withheld was 8% for the first $ 90,000 of annual perceptions. Werner authorized the following payroll deductions: a contribution of 1% to United Fund and life insurance of $ 30 per month.
- Regarding Werner, United incurred expenses payroll tax for tax LFCS 8% for the first $ 90,000 of annual perception. The company will also pay federal unemployment tax by 0.8% on the first $ 7,000 of annual perceptions. In addition, Warner United provides medical insurance at a cost of $ 150 per month. In 2010, United paid $ 5,000 a retirement plan Warner.
Is required:
- Calculate gross pay Warner, payroll deductions and net pay for the entire year 2010. Round Allamount to the nearest dollar.
gross pay: $ ____________
Federal Income tax: $ ____________
State Tax: $ ____________
Social Security: $ ____________
Contributions to charitable causes: $ ____________
Life insurance: $ ____________
Net payment: $ ____________
- Calculate the total expenditure payroll United 2010 for Warner.
Social Security: $ ____________
federal unemployment: $ ____________
Health insurance: $ ____________
Retirement plan expenses: $ ____________
- Make the journal to record spending in relation to United perceptions of Warner's total for the year, payroll deductions and net pay. Make charged to expenses salary and bonus expenses, as appropriate. Make a credit to the accounts of liabilities for payroll deductions and net cash payment account.