Hyer Drug Store has four employees who are paid on an hourly basis plus time-anda-half for all hours worked in excess of 40 a week. Payroll data for the week ended February 15,2012, are presented below.
Employees Hours Hourly Federal Income tax united found
worked rate whitholdings constributions
L. Steck 39 $15.00 $ ? $- 0-
S. Jabar 42 13.00 ? 5.00
M. Cape 44 12.00 61 7.50
L.Wild 46 12.00 46 5.00
Steck and Jabar are married. They claim 2 and 4 withholding allowances, respectively. The following tax rates are applicable: FICA 8%, state income taxes 3%, state unemployment taxes 5.4 % and federal unemployment 0.8%. The first three employees are sales clerks( store wages expense). The fourth employee performs administartive duties( office wages expense)
Instructions
(a) Prepare a payroll register for the weekly payroll. (Use the wage-bracket withholding table in the text for federal income tax withholdings.)
(b) Journalize the payroll on February 15, 2012, and the accrual of employer payroll taxes.
(c) Journalize the payment of the payroll on February 16, 2012.
(d) Journalize the deposit in a Federal Reserve bank on February 28, 2012, of the FICA and federal income taxes payable to the government.