Question : 177.A company has three employees. Total salaries for the month : 1258976

177.A company has three employees. Total salaries for the month of January were $8,000. The federal income tax rate for all employees is 15%. The FICA—social security tax rate is 6.2% and the FICA—Medicare tax rate is 1.45%. Calculate the amount of employee taxes withheld and prepare the company’s journal entry to record the January payroll assuming these were the only deductions.    

178.A company has 90 employees and a weekly payroll of $117,000. The FICA—social security tax withheld totals $7,254 and the FICA—Medicare tax withheld totals $1,696.50. The total withholding for federal income tax is $16,500. Prepare the journal entry to accrue this week’s salaries expense and withholdings.    

179.Santa Barbara Express has 4 sales employees, each of whom earns $5,000 per month and is paid on the last working day of the month. Each employee’s wages are subject to FICA social security taxes of 6.2% and Medicare taxes of 1.45% on all wages. Withholding for each employee also includes federal income tax of 16% and monthly medical insurance premiums of $110 for each employee.a. Prepare the general journal entry to accrue the monthly sales salaries expense at January 31.b. The employer payroll taxes for Santa Barbara Express include FICA taxes, federal unemployment taxes of 0.6% of the first $7,000 paid each employee, and state unemployment taxes of 4.0% of the first $7,000 paid to each employee. Prepare the journal entry to record the employer’s payroll taxes at January 31 for Santa Barbara Express. (Assume that none of the employees has reached the unemployment limit of $7,000.)    

180.The payroll records of a company provided the following data for the weekly pay period ended December 7: 

EmployeeEarningsto End ofPreviousWeekGrossPayFederalIncomeTaxesMedicalInsuranceDeductionUnionDuesUnitedWay

Ronald Arthur$54,000$1,200$216$125$15$15

John Baines  40,500    900 162 125               15               30

Ted Carter  45,000 1,000 180 150 0 20

The FICA social security tax rate is 6.2% and the FICA Medicare tax rate is 1.45% on all of this week’s wages paid to each employee. The federal and state unemployment tax rates are 0.8% and 5.4%, respectively, on the first $7,000 paid to each employee. Prepare the journal entries to (a) accrue the payroll and (b) record payroll taxes expense.    

181.A company’s payroll for the week ended May 15 included earned salaries of $20,000. All of that week’s pay is subject to FICA social security taxes of 6.2% and Medicare taxes of 1.45%. In addition, the company withholds the following amounts for this weekly pay period: $900 for medical insurance, $3,400 for federal income taxes, and $180 for union dues. a. Prepare the general journal entry to accrue the payroll. b. The company is subject to state unemployment taxes at the rate of 2% and federal unemployment taxes at the rate of 0.6%. By May 15, some employees had earned over $7,000, so only $11,000 of the $20,000 weekly gross pay was subject to unemployment tax. Prepare the general journal entry to accrue the employer’s payroll tax expense.    

182.A company’s employees had the following earnings records at the close of the current payroll period: 

 EmployeesEarning through Prior Pay PeriodEarning this Pay Period

F. Argent$11,300$3,900

A. Garza6,1002,500

L. Hong9,5003,100

R. Levinson4,8001,400

J. Young10,0003,000

The company’s payroll taxes expense on each employee’s earnings includes: FICA Social Security taxes of 6.2% on the first $117,000 of earnings plus 1.45% FICA Medicare on all wages; 0.6% federal unemployment taxes on the first $7,000; and 2.5% state unemployment taxes on the first $7,000. Compute the employer’s total payroll taxes expense for the current pay period.