Question - Windsor Hardware Company's payroll for November 2017 is summarized below.
|
Payroll
|
Wages Due
|
FICA
|
Amount Subject to Payroll Taxes
|
|
Unemployment Tax
|
|
Federal
|
State
|
|
Factory
|
$128,300
|
$128,300
|
$40,600
|
$40,600
|
|
Sales
|
34,500
|
34,500
|
4,200
|
4,200
|
|
Administrative
|
37,100
|
37,100
|
|
|
|
Total
|
$199,900
|
$199,900
|
$44,800
|
$44,800
|
At this point in the year, some employees have already renewed wages in excess or those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee's wages to $118,500 and 1.45% in excess of $118,500. Of the $199,900 wages subject to FICA tax, $21,100 of the sales wages is in excess of $118,500. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $16,300 for factory, $7,200 for sales, and $6,200 for administrative.
Prepare a schedule showing the employer's total cost of wages for November by function.
Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer's payroll taxes.