Payroll Accounting
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ContinuingPayrollProblem.docxContinuing Payroll Problem: Chapter 3
As you learned in the previous chapter, Kipley Company is a small manufacturing firm located in Pittsburgh, Pennsylvania. The company has a workforce of both hourly and salaried employees. In the last chapter, gross wages were computed for each employee. Adjacent to their name, each employee's gross wages are shown in the Payroll Register.
The next task is computing the FICA withholding for each employee and the employer's liability.
Requirements:
1. Compute the OASDI for each employee.
2. Compute the HI for each employee.
3. On the Employer Register, compute the employer FICA liability.
Payroll Register
Complete the steps below:
1. Compute the OASDI for each employee.
2. Compute the HI for each employee.
3. Compute the totals for each tax.
Note: Round your final answers to the nearest cent.
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KIPLEY COMPANY, INC. Employee Payroll Register For Period Ending January 8, 20 -- |
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EARNINGS |
DEDUCTIONS |
NET PAY |
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Name |
Gross |
OASDI |
HI |
FIT |
SIT |
SUTA |
CIT |
SIMPLE |
Grp. Ins. |
Health Ins. |
Ck. No. |
Amount |
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Carson, F. |
$700.00 |
fill in the blank 1 of 25$ |
fill in the blank 2 of 25$ |
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Wilson, W. |
897.04 |
fill in the blank 3 of 25 |
fill in the blank 4 of 25 |
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Utley, H. |
678.75 |
fill in the blank 5 of 25 |
fill in the blank 6 of 25 |
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Fife, L. |
877.10 |
fill in the blank 7 of 25 |
fill in the blank 8 of 25 |
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Smith, L. |
790.00 |
fill in the blank 9 of 25 |
fill in the blank 10 of 25 |
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Fay, G. |
539.15 |
fill in the blank 11 of 25 |
fill in the blank 12 of 25 |
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Robey, G. |
623.08 |
fill in the blank 13 of 25 |
fill in the blank 14 of 25 |
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Schork, T. |
773.08 |
fill in the blank 15 of 25 |
fill in the blank 16 of 25 |
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Hardy, B. |
666.11 |
fill in the blank 17 of 25 |
fill in the blank 18 of 25 |
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Kipley, C. |
1,000.00 |
fill in the blank 19 of 25 |
fill in the blank 20 of 25 |
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Totals |
fill in the blank 21 of 25$ |
fill in the blank 22 of 25$ |
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Taxable Earnings
In the Totals row, complete the following:
1. Enter the earnings upon which the employer FICA liability will be computed.
2. Compute the employer OASDI liability, using 6.2%.
3. Compute the employer HI liability, using 1.45%.
Note: Round your final answers to the nearest cent.
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KIPLEY COMPANY, INC. Taxable Earnings Payroll Taxes |
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Earnings |
OASDI |
HI |
FUTA |
SUTA |
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Totals |
fill in the blank 1 of 3$ |
fill in the blank 2 of 3$ |
fill in the blank 3 of 3$ |
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