Todd Thompson’s weekly gross earnings for the present week were $1,400. Thompson has one exemption. Using the wage bracket withholding table

Todd Thompson’s weekly gross earnings for the present week were $1,400. Thompson has one exemption. Using the wage bracket withholding table in Exhibit 3 with a $70 standard withholding allowance for each exemption, what is Thompson’s federal income tax withholding?


Answer:












Total wage payment…………………………………………………………… $1,400.00
One allowance (provided by IRS)……………………………………………… $70.00
Multiplied by allowances claimed on Form W-4…………………………… × 1 70.00
Amount subject to withholding……………………………………………… $1,330.00
Initial withholding from wage bracket in Exhibit 3……………………… $ 91.40
Plus additional withholding: 25% of excess over $704*………………… 156.50
Federal income tax withholding……………………………………………… $ 247.90
*($1,330 – $704) × 25%





The payroll register of Konrath Co. indicates $13,200 of social security withheld and $3,300 of Medicare tax withheld on total salaries of $220,000 for the period. Federal withholding for the period totaled $43,560. Provide the journal entry for the period’s payroll.


Answer:







Salaries Expense 220,000
Social Security Tax Payable 13,200
Medicare Tax Payable 3,300
Employees Federal Income Tax Payable 43,560
Salaries Payable 159,940