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E13-9+Payroll+Tax+Entries

E13-9+Payroll+Tax+Entries - of the sales wages is in excess...

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E13-9 Allison Hardware Company's payroll for November 2010 is summarized below. Amount Subject to Payroll Taxes Unemployment Tax Payroll Wages Due F.I.C.A Federal State Factory $140,000 $140,000 $40,000 $40,000 Sales 32,000 32,000 4,000 4,000 Administrative 36,000 36,000 ----- ----- Total $208,000 $208,000 $44,000 $44,000 At this point in the year some emplyees have already received wages in excess of those to which payro taxes apply. Assume that the state unemployment tax is 2.5%. The F.I.C.A. rate is 7.65% on an employ wages to $102,000 and 1.45% in excess of $102,000. Of the $208,000 wages subject to F.I.C.A. tax, $
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Unformatted text preview: of the sales wages is in excess of $102,000. Federal unemployment tax rate is 0.8% after credits. Incom tax withheld amounts to $16,000 for factory, $7,000 for sales, and $6,000 for administrative. Instructions a. Prepare a schedule showing the employer's total cost of wages for November by function. b. Prepare the journal entries to record the factory, sales, and administrative payrolls including the emp roll yee's $20,000 me ployer's payroll taxes....
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