Payroll

profilehurricanes71
a177_module_08_assignment.xlsx
Home>Business & Finance homework help>Accounting homework help>Payroll

Written Exercise

Module 08 Written Exercise
For this exercise, conduct an internet search, use your assigned reading, or go to The Department of Labor at http://www.workforcesecurity.doleta.gov/unemploy/uitaxtopic.asp. to answer the following questions:
Instructor Feedback
1 What is FUTA? Who is responsible for paying this tax?
2 What is the maximum and minimum FUTA rate that could be paid by an employer?
3 What is a wage-base limit and what does this mean for FUTA taxes?
4 How does the credit received for participation in a SUTA plan affect an employers FUTA rate?

Payroll Problems

Module 08 Payroll Problems
Problem 8.1
Assume that the FUTA tax rate is .95%. Calculate the FUTA taxes.
FUTA
Employee Wages Taxes Instructor Feedback
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
Totals
Problem 8.2
Assume that the FUTA tax rate is .7%. Calculate the FUTA taxes.
FUTA Instructor Feedback
Employee Wages Taxes
No. 1 $ 804.00
No. 2 $ 1,289.00
No. 3 $ 2,856.00
No. 4 $ 3,258.00
No. 5 $ 5,987.00
Totals
Problem 8.3
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.
Instructor Feedback
FUTA Employee FICA
Employee Wages Taxes OASDI HI
No. 1 $ 769.00
No. 2 $ 968.00
No. 3 $ 1,906.00
No. 4 $ 3,905.00
No. 5 $ 4,896.00
Totals
Employer FICA
OASDI HI
Payroll Taxes Expense
Problem 8.4
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.
Instructor Feedback
FUTA Employee FICA
Employee Wages Taxes OASDI HI
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
Totals
Employer FICA
OASDI HI General Journal
Account Debit Credit
Payroll Taxes Expense
Problem 8.5
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.
FUTA Instructor Feedback
Current Taxable FUTA Employee FICA
Employee YTD Wages Wages Wages Taxes OASDI HI
No. 1 $ 1,500.00 $ 1,500.00
No. 2 $ 2,500.00 $ 2,500.00
No. 3 $ 3,800.00 $ 3,800.00
No. 4 $ 4,300.00 $ 4,300.00
No. 5 $ 5,700.00 $ 5,700.00
Totals
Employer FICA
OASDI HI General Journal
Account Debit Credit
Payroll Taxes Expense

Continuing Problem Instructions

Continuing Problem Instructions
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 first 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.

Continuing Problem Worksheet

Continuing Problem Worksheen
North Country Hotel and Resort
Payroll Register
For the Period Ending: Jan. 07, 20XX
No. Employee Marital Status Allow. Regular Earnings Overtime Earnings Deductions Net Pay Taxable Earnings OASDI HI FIT SIT SUTA CIT SIMPLE GROUP HEALTH Net
Hours Hourly Rate Earnings Hours Hourly Rate Earnings Total Earnings Group Life Health Plan 401K / Simple FICA FIT SIT CIT SUTA Check No. Amount OASDI HI FUTA SUTA 0.062 0.0145 0.0307 0.0007 0.03 INS INS pay oasdi hi futa suta
OASDI HI
300 Adams, Nikki 21313 300 300 18.60
Mark Sears: Enter as a formula of taxable earnings x OASDI rate 		4.35
Mark Sears: Enter as a formula of taxable earnings x HI rate 		17.00 9.21 0.21 9.00 20.00 0.85 1.65 219.13 300.00 300.00 300.00 300.00
111 Barr, Stephanie 21314 290 87.04 377.04 23.38 5.47 34.00 11.58 0.26 11.31 50.00 0.85 1.65 238.55 377.04 377.04 377.04 377.04
208 Duginski, Samuel 21315 303.75 303.75 18.83 4.40 - 0 9.33 0.21 9.11 40.00 0.85 1.65 219.36 303.75 303.75 303.75 303.75
198 Glander, Morgan 21316 316 71.1 387.1 24.00 5.61 - 0 11.88 0.27 11.61 50.00 0.85 1.65 281.22 387.10 387.10 387.10 387.10
189 Hines, Terrance 21317 390 390 24.18 5.66 19.00 11.97 0.27 11.70 20.00 - 0 1.65 295.57 390.00 390.00 390.00 390.00
68 Jama, Adamo 21318 515 24.15 539.15 33.43 7.82 11.00 16.55 0.38 16.17 40.00 0.85 1.65 411.30 539.15 539.15 539.15 539.15
45 Lee, Min 21319 392.31 392.31 24.32 5.69 - 0 12.04 0.27 11.77 50.00 0.85 1.65 285.71 392.31 392.31 392.31 392.31
17 Rorberts, Tammi 21320 542.31 542.31 33.62 7.86 47.00 16.65 0.38 16.27 60.00 - 0 1.65 358.88 542.31 542.31 542.31 542.31
12 Vick, Tomika 21321 348.46 52.28 400.74 24.85 5.81 - 0 12.30 0.28 12.02 30.00 0.85 1.65 312.98 400.74 400.74 400.74 400.74
9 Yo, Margaret 21322 1000 1000 62.00 14.50 24.00 30.70 0.70 30.00 80.00 0.85 1.65 755.60 1,000.00 1,000.00 1,000.00 1,000.00
Totals 4,397.83
Mark Sears: Enter as formula totaling column 		234.57
Mark Sears: Enter as formula totaling column 		4,632.40
Mark Sears: Enter as formula totaling column 		287.21
Mark Sears: Enter as formula totaling column 		67.17
Mark Sears: Enter as formula totaling column 		152.00
Mark Sears: Enter as formula totaling column 		142.21
Mark Sears: Enter as formula totaling column 		3.24
Mark Sears: Enter as formula totaling column 		138.97
Mark Sears: Enter as formula totaling column 		440.00
Mark Sears: Enter as formula totaling column 		6.80
Mark Sears: Enter as formula totaling column 		16.50
Mark Sears: Enter as formula totaling column 		3,378.29
Mark Sears: Enter as formula totaling column 		4,632.40
Mark Sears: Enter as formula totaling column 		4,632.40
Mark Sears: Enter as formula totaling column 		4,632.40
Mark Sears: Enter as formula totaling column 		4,632.40
Mark Sears: Enter as formula totaling column

Mark Sears: Enter as a formula of taxable earnings x OASDI rate
Mark Sears: Enter as a formula of taxable earnings x HI rate
Mark Sears: Enter as formula totaling column
Mark Sears: Enter as formula totaling column
Mark Sears: Enter as formula totaling column
Mark Sears: Enter as formula totaling column
Mark Sears: Enter as formula totaling column
Mark Sears: Enter as formula totaling column
Mark Sears: Enter as formula totaling column 		Journal
Date Account Debit Credit Taxable OASDI
Earnings Rate Tax
01/07/20XX Salaries and Wages Expense OASDI 4,632.40
Employee FIT Payable 287.21
Employee SIT Payable HI Tax 67.17 Taxable
Empoyee SUTA Payable HI 152.00 Earnings Rate Net FUTA
Employee CIT Payabale 142.21 4,632.40 0.006 27.79
FICA - OASDI Payable 3.24 SUTA
FICA - HI Payable FUTA Tax 138.97 4,632.40 0.036785 170.40
401K Contributions Payable FUTA 440.00
Group Insurance Premiums Payable 6.80
Health Insurance Premiums Payable SUTA Tax 16.50
Salaries and Wages Payable SUTA 3,378.29
01/07/20XX Payroll Taxes Expense 552.58
FICA - OASDI Payable 287.21
FICA - HI Payabale 67.17
FUTA Taxes Payable 27.79
SUTA Taxes Payable 170.40
01/14/20XX Salaries and Wages Payable 3,378.29
Cash 3,378.29