Assignment Details
Payroll Accounting
ABC Company has four employees. Their general payroll details are as follows:
- One of the employees is a salaried employee, while the other employees are hourly.
- Employees are paid $15 per hour and receive time and a half for overtime after working 40 hours.
- FICA Social Security is 6.2% for the employee and 6.2% for the employer.
- FUTA tax rate is 0.6% (0.006) on the first $7,000.
- SUTA tax rate is 2% (0.02) on the first $7,000.
- Employees are paid weekly.
HINT: Remember the maximum FICA Social Security limit for both the employer and employee is $142,800. Also, yearly salary amounts should be divided by 52 weeks to get the weekly salary. The employees’ specific details are as follows:
- Julia Roberts:
- Salary: $160,000/year
- Year-to-Date Pay: $145,000
- Federal Withholding: $743
- State Withholding: $525
- Michael Jackson:
- 45 hours for the period
- Year-to-Date Pay: $28,200
- Federal Withholding: $91
- State Withholding: $25
- Paul Walker:
- 30 hours for the period
- Year-to-Date Pay: $19,800
- Federal Withholding: $38
- State Withholding: $12
- Burt Reynolds:
- 15 hours for the period
- Year-to-Date Pay: $4,600
- Federal Withholding: $11
- State Withholding: $7
Based on the information above, please complete the worksheet (tab 2) and journalize the payroll (tab 3) for this period. Use to complete your assignment.
