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

The payroll register of Longboat Co. indicates $5,400 of social security withheld and $1,350 of Medicare tax withheld on total salaries

The payroll register of Longboat Co. indicates $5,400 of social security withheld and $1,350 of Medicare tax withheld on total salaries of $90,000 for the period. Retirement savings withheld from employee paychecks were $5,400 for the period. Federal withholding for the period totaled $17,820. Provide the journal entry for the period’s payroll.


Answer:









Salaries Expense 90,000
Social Security Tax Payable 5,400
Medicare Tax Payable 1,350
Employees Federal Income Tax Payable 17,820
Retirement Savings Deductions Payable 5,400
Salaries Payable 60,030




Todd Thompson’s weekly gross earnings for the week ended May 23 were $1,400, and his federal income tax withholding was $247.90. Assuming the social security rate is 6% and Medicare is 1.5% of all earnings, what is Thompson’s net pay?


Answer:







Total wage payment………………………………………… $1,400.00
Less: Federal income tax withholding………………… $247.90
Social security tax ($1,400 × 6%)……………… 84.00
Medicare tax ($1,400 × 1.5%)……………………… 21.00 352.90
Net pay…………………………………………………………… $1,047.10