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# ACC124 - 511-5 511-7 511-8 511-9 511-10 Gene Oldham is paid...

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Unformatted text preview: 511-5. 511-7. 511-8. 511-9. 511-10. Gene Oldham is paid \$600 for a 40-hour week and time-antl-a-half for hours above 40. 1. Compute Oldham’s gross pay for working 50 hours during the ﬁrst week of February. 2. Oldham’s income tax withholding is 10% of total pay. His only pay- roll deductions are payroll taxes. Compute Oldham’s net pay for the week, using a 7.65% FICA tax rate and assuming his total earnings are still below \$94,200 for the year. Refer to 811-6. Oldham’s employer, Bobby King Golf Company, pays all employer payroll taxes plus beneﬁts for employee retirements at 5% of total pay, health insurance of \$60 per employee per month, and disabil- ity insurance of \$8 per employee per month. Compute Bobby King’s total expense of employing Gene Oldham for the 50 hours that he worked during the ﬁrst week of February. Assume that Oldham has made less than \$7,000. Carry amounts to the nearest cent. Refer to 311:6 and 311-7. Record the following for Bobby King Golf Company: 1. Employee compensation 2. Employer payroll taxes and contributions to employee beneﬁts Suppose you work for an accounting ﬁrm all year and earn a monthly salary of \$8,000. No overtime is paid. Your withheld income taxes consume 15% of gross pay. In addition to payroll taxes, you elect to contribute 5% monthly to your retirement plan. Your employer also deducts \$200 monthly for your co-payment of the health insurance pre- mium. Compute your not pay for November. Use a 7.65% FICA tax rate, and assume that. total earnings for the year are still less than \$94,200. The following information was taken from Harper Company’s payroll register for the month of June. Employee Earnings: Regular employee earnings ....................... \$17,500.00 Overtime pay .............................................. 7,500.00 Gross employee earnings ........................... \$25,000.00 Deductions and Net Pay: Income tax withheld .................................. \$ 2,300.00 FICA tax ..................................................... 1,912.50 Charitable contributions ........................... 400.00 Medical insurance ...................................... 700.00 Total deductions ......................................... 5,312.50 Net pay ....................................................... \$19,687.50 Account Debited: Salary Expense .......................................... \$25,000.00 Prepare the journal entry to record employee compensation. ...
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