Question: (Payroll Tax Entries)
Below is a payroll sheet for Jedi Import Company for the month of September 2007. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% F.I.C.A. tax on employee and employer on a maximum of $90,000. In addition, 1.45% is charged both employer and employee for an employee's wage in excess of $90,000 per employee.
| Name |
Earnings to Aug. 31 |
September Earnings |
Income Tax Withholding |
F.I.C.A. |
State U.C. |
Federal U.C. |
| B.D. Williams |
$6,800 |
$ 800 |
|
|
|
|
| D. Prowse |
6,300 |
700 |
|
|
|
|
| K. Baker |
7,600 |
1,100 |
|
|
|
|
| F. Oz |
13,600 |
1,900 |
|
|
|
|
| A. Daniels |
105,000 |
15,000 |
|
|
|
|
| B. Mayhew |
112,000 |
16,000 |
|
|
|
|