Problem 8 – Payroll Register.pdf

# Problem 8 – Payroll Register.pdf - Problem 8 Payroll...

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Problem 8 – Payroll Register (PAYROLL) Learning Objectives Prepare and use a payroll register for a sole proprietorship firm that contains both social security and payroll withholdings. Use =IF and =ROUND functions to compute the Social Security tax, Medicare tax, and union dues formulas. Record journal entries for payroll related transactions. Identify behavior patterns among various payroll taxes. Answer What If Scenarios. Adjust the template to include a new employee. Create a Chart showing the percentage of an employee’s gross pay that is withheld for taxes and other deductions, including the amount taken home as net pay. Problem Data The Critter Crates Company has five employees and they are paid on the last day of each month. Payroll data for October of this year is as follows: Employee Gross Pay for October Federal Income Cumulative Pay at Union Tax Withheld 9/30/XX Member Amber Adilla \$5,200 \$785.00 \$??? (See #1 below) Yes Bobby Bonilla 4,300 731.00 38,700 No Candice Chameleon 1,250 112.50 6,750 No Donna Donilla 12,000 1,875.00 119,000 No Freddy Falcon 10,000 1,560.00 110,000 Yes Other Information regarding payroll rates are as follows: a. Social Security taxes are 6.2% of monthly gross pay up to a cumulative total pay of \$118,500. Both employer and employees must pay this for each employee up to the maximum given. b. Medicare taxes are 1.45% on monthly gross pay with no upper limit. c. A \$50 monthly deduction is made for union dues for all union members. d. Unemployment taxes are paid on monthly gross pay up to the first \$7,000 earned by each employee each year. State and local rates are 5.4% and .8% respectively.

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• Spring '18
• Maureen Baker
• gross pay

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