Module Payroll Problems
Problem 1
Assume that the FUTA tax rate is .95%. Calculate the FUTA taxes.
| Employee |
Wages |
| No. 1 |
$ 1,025.00 |
| No. 2 |
$ 1,958.00 |
| No. 3 |
$ 2,907.00 |
| No. 4 |
$ 3,689.00 |
| No. 5 |
$ 6,891.00 |
Problem 2
Assume that the FUTA tax rate is .7%. Calculate the FUTA taxes.
|
Employee
|
Wages
|
|
No. 1
|
$ 804.00
|
|
No. 2
|
$ 1,289.00
|
|
No. 3
|
$ 2,856.00
|
|
No. 4
|
$ 3,258.00
|
|
No. 5
|
$ 5,987.00
|
Problem 3
Assume that the FUTA tax rate is .65%. For the FICA taxes, assume an OASDI rate of 6.5% and an HI rate of 1.25%.
Calculate the FUTA and FICA taxes. Also determine the Payroll Taxes Expense.
|
Employee
|
Wages
|
|
No. 1
|
$ 769.00
|
|
No. 2
|
$ 968.00
|
|
No. 3
|
$ 1,906.00
|
|
No. 4
|
$ 3,905.00
|
|
No. 5
|
$ 4,896.00
|
Problem 4
Assume that the FUTA tax rate is .5%. For the FICA taxes, assume an OASDI rate of 6.2% and an HI rate of .75%.
Calculate the FUTA and FICA taxes. Also determine the Payroll Taxes Expense and record the accrual entry for the unpaid tax obligation for the employer.
|
Employee
|
Wages
|
|
No. 1
|
$ 1,205.00
|
|
No. 2
|
$ 2,389.00
|
|
No. 3
|
$ 3,697.00
|
|
No. 4
|
$ 4,258.00
|
|
No. 5
|
$ 5,923.00
|
Problem 5
Assume that the FUTA tax rate is .9% of the first $6,500. Also assume that OASDI taxes are collected on the first $112,300.
Use an OASDI rate of 4.5% and an HI rate of .65%. Calculate the FUTA and FICA taxes. Also determine the Payroll Taxes Expense and record the accrual entry for the unpaid tax obligation for the employer.
|
Employee
|
YTD Wages
|
|
No. 1
|
$ 1,500.00
|
|
No. 2
|
$ 2,500.00
|
|
No. 3
|
$ 3,800.00
|
|
No. 4
|
$ 4,300.00
|
|
No. 5
|
$ 5,700.00
|
|
FUTA
|
|
Current
|
Taxable
|
FUTA
|
|
Wages
|
Wages
|
Taxes
|
|
$ 1,500.00
|
|
|
|
$ 2,500.00
|
|
|
|
$ 3,800.00
|
|
|
|
$ 4,300.00
|
|
|
|
$ 5,700.00
|
|
|
Problem 6 Refer to the partially completed payroll register which you worked on last week. 1. Enter each employee's gross earnings in the Taxable Earnings-FUTA column. 2. Total the Taxable Earnings-FUTA column. 3. At the bottom of your payroll register, assuming a rate of .6%, compute the Net FUTA tax. Since this is the ?rst pay period of the year, none of the employees are near the $7,000 ceiling; therefore, each employee's gross earnings is subject to the FUTA tax. These calculations will be used at the end of module 10 in recording the payroll tax entries.
Attachment:- Module.xlsx