Homework: Payroll Accounting
ABC Company has four employees. Their general payroll details are as follows:
1. One of the employees is a salaried employee, while the other employees are hourly.
2. Employees are paid $15 per hour and receive time and a half for overtime after working 40 hours.
3. FICA Social Security is 6.2% for the employee and 6.2% for the employer.
4. FUTA tax rate is 0.6% (0.006) on the first $7,000.
5. SUTA tax rate is 2% (0.02) on the first $7,000.
6. 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:
1. Julia Roberts:
• Salary: $160,000/year
• Year-to-Date Pay: $145,000
• Federal Withholding: $743
• State Withholding: $525
2. Michael Jackson:
• 45 hours for the period
• Year-to-Date Pay: $28,200
• Federal Withholding: $91
• State Withholding: $25
3. Paul Walker:
• 30 hours for the period
• Year-to-Date Pay: $19,800
• Federal Withholding: $38
• State Withholding: $12
4. Burt Reynolds:
• 15 hours for the period
• Year-to-Date Pay: $4,600
• Federal Withholding: $11
• State Withholding: $7
Format your homework according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the homework, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.
Attachment:- Payroll-Accounting-Template.rar