Computing payroll amounts considering fica tax ceilings


Question: Computing payroll amounts considering FICA tax ceilings Brooke Clover works for JDK all year and earns a monthly salary of $11,900. There is no overtime pay. Brooke's income tax withholding rate is 10% of gross pay. In addition to payroll taxes, Brooke elects to contribute 1% monthly to United Way. JDK also deducts $250 monthly for co-payment of the health insurance premium. As of September 30, Brooke had $107,100 of cumulative earnings.

Requirements: 1. Compute Brooke's net pay for October.

2. Journalize the accrual of salaries expense and the payments related to the employment of Brooke Clover.

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Finance Basics: Computing payroll amounts considering fica tax ceilings
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