A weekly payroll summary made from labor time records shows the following data for Zuder Company:
|
Employee
|
Classification
|
Marital
Status
|
Hourly
Rate
|
Regular Hours
|
Overtime
Hours
|
|
C. Collier
|
Direct
|
Married
|
$15
|
40
|
2
|
|
S. Brown
|
Direct
|
Single
|
$13
|
40
|
6
|
|
E. Anglin
|
Direct
|
Single
|
$15
|
40
|
|
|
R. Kues
|
Indirect
|
Married
|
$12
|
40
|
3
|
|
A. Studer
|
Indirect
|
Married
|
$16
|
38
|
|
Other information:
a. Overtime is payable at one-and-a-half times the regular rate of pay for an employee and is distributed to all jobs worked on during the period.
b. Income taxes withheld (FIT) are $50 for employees with $610 or more of gross income in the period and $40 for those who earn less.
c. Each married employee contributes $60 for health insurance; single employees contribute $30.
d. FICA taxes are 8% on the first $100,000 of gross pay; FUTA and SUTA are 1% and 4%, respectively, on the first $8,000 of gross pay.
Since this is January, none of the employees have reached the limitations.
Required:
1. Determine the net pay of each employee.
2. Prepare the journal entries for the following:
a. Recording the payroll.
b. Paying the payroll.
c. Distributing the payroll.