ACCOUNTING HELP! Module 9
orbomartxv
module09.xlsxWritten Exercise
| Module 09 Written exercise | |||||||||||||||||
| For this exercise, conduct an internet search or use your assigned reading to answer the following questions: | |||||||||||||||||
| Instructor Feedback | |||||||||||||||||
| 1 | What is SUTA? Who is responsible for paying SUTA taxes? | ||||||||||||||||
| 2 | What is an experience rating? How does it affect the employer's SUTA rate? | ||||||||||||||||
| 3 | How can employers decrease their experience ratings? | ||||||||||||||||
| 4 | How does an employer report SUTA taxes? Identify a specific state in your explanation. | ||||||||||||||||
Payroll Problems
| Module 09 Payroll Problems | ||||||||||||||
| Problem 9.1 | ||||||||||||||
| Assume that the SUTA tax rate is 5.25%. Calculate the SUTA taxes for the employer. | ||||||||||||||
| SUTA | ||||||||||||||
| Employee | Wages | Taxes | Instructor Feedback | |||||||||||
| No. 1 | $ 1,325.00 | |||||||||||||
| No. 2 | $ 2,595.00 | |||||||||||||
| No. 3 | $ 3,200.00 | |||||||||||||
| No. 4 | $ 4,600.00 | |||||||||||||
| No. 5 | $ 7,250.00 | |||||||||||||
| Totals | ||||||||||||||
| Problem 9.2 | ||||||||||||||
| Assume that the SUTA tax rate is 6.5% and the FUTA tax rate is .7%. Also assume that SUTA and FUTA taxes are collected on the first $7,850. | ||||||||||||||
| Calculate the SUTA and FUTA taxes for the employer. | ||||||||||||||
| Current | SUTA | FUTA | Instructor Feedback | |||||||||||
| Employee | YTD Wages | Wages | Taxes | Taxes | ||||||||||
| No. 1 | $ 850.00 | $ 850.00 | ||||||||||||
| No. 2 | $ 1,380.00 | $ 1,380.00 | ||||||||||||
| No. 3 | $ 2,978.00 | $ 2,978.00 | ||||||||||||
| No. 4 | $ 3,895.00 | $ 3,895.00 | ||||||||||||
| No. 5 | $ 5,766.00 | $ 5,766.00 | ||||||||||||
| Totals | ||||||||||||||
| Problem 9.3 | ||||||||||||||
| Assume that the SUTA tax rate is 5.8% and the FUTA tax rate is .65% and that both taxes are limited to the first $6,500. Also assume that OASDI taxes are collected on the first $113,500. | ||||||||||||||
| Use an OASDI rate of 3.5% and an HI rate of .75%. Calculate the SUTA, FUTA, and FICA taxes. | ||||||||||||||
| Instructor Feedback | ||||||||||||||
| Current | SUTA | FUTA | Employee FICA | |||||||||||
| Employee | YTD Wages | Wages | Taxes | Taxes | OASDI | HI | ||||||||
| No. 1 | $ 900.00 | $ 900.00 | ||||||||||||
| No. 2 | $ 1,200.00 | $ 1,200.00 | ||||||||||||
| No. 3 | $ 2,100.00 | $ 2,100.00 | ||||||||||||
| No. 4 | $ 3,900.00 | $ 3,900.00 | ||||||||||||
| No. 5 | $ 5,400.00 | $ 5,400.00 | ||||||||||||
| Totals | ||||||||||||||
| Employer FICA | ||||||||||||||
| OASDI | HI | |||||||||||||
| Payroll Taxes Expense | ||||||||||||||
| Problem 9.4 | ||||||||||||||
| Assume that the SUTA tax rate is 7.2% of the first $7,400 and the FUTA tax rate is .9% of the first $6,000. 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 SUTA, 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 | ||||||||||||||
| SUTA | FUTA | Employee FICA | ||||||||||||
| Employee | YTD Wages | Wages | Taxes | Taxes | OASDI | HI | ||||||||
| No. 1 | $ 1,300.00 | $ 1,300.00 | ||||||||||||
| No. 2 | $ 2,800.00 | $ 2,800.00 | ||||||||||||
| No. 3 | $ 3,650.00 | $ 3,650.00 | ||||||||||||
| No. 4 | $ 4,250.00 | $ 4,250.00 | ||||||||||||
| No. 5 | $ 5,600.00 | $ 5,600.00 | ||||||||||||
| 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 you worked on last week. 1. Enter each employee’s gross earnings in the Taxable Earnings—SUTA column. 2. Total the Taxable Earnings—SUTA column. 3. At the bottom of your payroll register, assuming a rate of 5.85%, compute the SUTA tax. Minnesota does not limit the amount of wages subject to SUTA, so all wages are subject to SUTA tax. Assume that employees are subject to a SUTA rate of .75%. In reality, however, Minnesota does not impose a SUTA tax on employees. |
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 | S | 1 | 40 | $ 12.50 | $ 500.00 | 0 | $18.75 | - 0 | $ 500.00 | $ 5.00 | $ 50.00 | $ 20.00 | $ 27.00 | $ 3.25 | $ 39.00 | $ 8.60 | $ 4.30 | $ 270.00 | 21313 | $ 222.85 | $ 27.00 | $ 3.25 | OOOO | $ 270.00 | 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 | S | 0 | 40 | $ 13.00 | $ 520.00 | 8 | $19.50 | 156.00 | $ 676.00 | $ 5.00 | $ 50.00 | $ 50.00 | $ 36.50 | $ 4.39 | $ 71.00 | $ 11.52 | $ 5.76 | $ 365.04 | 21314 | $ 286.79 | $ 36.50 | $ 4.39 | OOOO | $ 365.04 | 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 | M | 2 | 39.5 | $ 16.75 | $ 661.63 | 0 | $25.13 | - 0 | $ 661.63 | $ 5.00 | $ 100.00 | $ 40.00 | $ 35.73 | $ 4.30 | $ 21.00 | $ 10.43 | $ 5.22 | $ 357.28 | 21315 | $ 372.67 | $ 35.73 | $ 4.30 | OOOO | $ 357.28 | 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 | M | 4 | 40 | $ 14.00 | $ 560.00 | 6 | $21.00 | 126.00 | $ 686.00 | $ 5.00 | $ 100.00 | $ 50.00 | $ 37.04 | $ 4.46 | $ 7.00 | $ 10.72 | $ 5.36 | $ 370.44 | 21316 | $ 405.98 | $ 37.04 | $ 4.46 | OOOO | $ 370.44 | 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 | S | 2 | 40 | $ 18.25 | $ 730.00 | 0 | $27.38 | - 0 | $ 730.00 | $ 5.00 | $ 50.00 | $ 20.00 | $ 39.42 | $ 4.75 | $ 62.00 | $ 13.20 | $ 6.60 | $ 394.20 | 21317 | $ 284.83 | $ 39.42 | $ 4.75 | OOOO | $ 394.20 | 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 | M | 3 | 40 | $ 26.25 | $ 1,050.00 | 1.75 | $39.38 | 68.91 | $ 1,118.91 | $ 10.00 | $ 100.00 | $ 40.00 | $ 60.42 | $ 7.27 | $ 70.00 | $ 19.58 | $ 9.79 | $ 604.21 | 21318 | $ 497.64 | $ 60.42 | $ 7.27 | OOOO | $ 604.21 | 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 | M | 6 | 40 | $ 27.55 | $ 1,102.00 | 4 | $41.33 | 165.30 | $ 1,267.30 | $ 10.00 | $ 100.00 | $ 50.00 | $ 68.43 | $ 8.24 | $ 57.00 | $ 22.35 | $ 11.17 | $ 684.30 | 21319 | $ 575.74 | $ 68.43 | $ 8.24 | OOOO | $ 684.30 | 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 | S | 1 | 40 | $ 36.63 | $ 1,465.20 | 0 | $54.95 | - 0 | $ 1,465.20 | $ 10.00 | $ 50.00 | $ 60.00 | $ 79.12 | $ 9.52 | $ 229.30 | $ 27.10 | $ 13.55 | $ 791.93 | 21320 | $ 435.53 | $ 79.19 | $ 9.53 | OOOO | $ 791.93 | 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 | M | 5 | 40 | $ 49.10 | $ 1,964.00 | 1 | $73.65 | 73.65 | $ 2,037.65 | $ 10.00 | $ 100.00 | $ 30.00 | $ 110.03 | $ 13.24 | $ 187.25 | $ 38.15 | $ 19.08 | $ 1,100.25 | 21321 | $ 731.73 | $ 110.02 | $ 13.24 | OOOO | $ 1,100.25 | 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 | M | 7 | $ 2,403.85 | - 0 | $ 2,403.85 | $ 15.00 | $ 100.00 | $ 80.00 | $ 129.81 | $ 15.63 | $ 222.86 | $ 44.48 | $ 22.24 | $ 1,298.08 | 21322 | $ 860.75 | $ 129.81 | $ 15.63 | OOOO | $ 1,298.08 | 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 | $ 10,956.68 | 589.86 | $ 11,546.53 | $ 80.00 | $ 800.00 | $ 440.00 | $ 623.51 | $ 75.05 | $ 966.41 | $ 206.13 | $ 103.07 | $ 6,235.57 | $ 4,674.51 | $ 623.56 | $ 75.06 | OOOO | $ 6,235.57 | 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 | 11547.65 | OASDI | $ 524.56 | 4,632.40 | ||||||||||||||||||||||||||||||||||||||||||||||
| Employee FIT Payable | $ 962.53 | 287.21 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Employee SIT Payable | $ 206.15 | HI Tax | 67.17 | Taxable | |||||||||||||||||||||||||||||||||||||||||||||||
| Empoyee SUTA Payable | $ 6,235.57 | HI | $ 75.06 | 152.00 | Earnings | Rate | Net FUTA | ||||||||||||||||||||||||||||||||||||||||||||
| Employee CIT Payabale | $ 103.08 | 142.21 | 4,632.40 | 0.006 | 27.79 | ||||||||||||||||||||||||||||||||||||||||||||||
| FICA - OASDI Payable | $ 623.56 | 3.24 | SUTA | ||||||||||||||||||||||||||||||||||||||||||||||||
| FICA - HI Payable | $ 75.06 | FUTA Tax | 138.97 | 4,632.40 | 0.036785 | 170.40 | |||||||||||||||||||||||||||||||||||||||||||||
| 401K Contributions Payable | $ 440.00 | FUTA | $ - 0 | 440.00 | |||||||||||||||||||||||||||||||||||||||||||||||
| Group Insurance Premiums Payable | $ 75.00 | 6.80 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Health Insurance Premiums Payable | $ 800.00 | SUTA Tax | 16.50 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and Wages Payable | $ 2,026.70 | SUTA | $ 6,235.57 | 3,378.29 | |||||||||||||||||||||||||||||||||||||||||||||||
| 01/07/20XX | Payroll Taxes Expense | $ 7,507.33 | 552.58 | ||||||||||||||||||||||||||||||||||||||||||||||||
| FICA - OASDI Payable | $ 623.56 | 287.21 | |||||||||||||||||||||||||||||||||||||||||||||||||
| FICA - HI Payabale | $ 75.06 | 67.17 | |||||||||||||||||||||||||||||||||||||||||||||||||
| FUTA Taxes Payable | $ - 0 | 27.79 | |||||||||||||||||||||||||||||||||||||||||||||||||
| SUTA Taxes Payable | $ 6,235.57 | 170.40 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 01/14/20XX | Salaries and Wages Payable | $ 4,674.51 | 3,378.29 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Cash | $ 573.14 | 3,378.29 | |||||||||||||||||||||||||||||||||||||||||||||||||
