Hal Striker manages a Frosty World drive-in. His straight-time pay is $19 per hour, with time-and-a-half for hours in excess of 40 per week. Striker's payroll deductions include withheld income tax of 20%, FICA tax, and a weekly deduction of $8 for a charitable contribution to United Way. Striker worked 50 hours during the week. i (Click the icon to view payroll tax rate information.) Read the requirements. Requirement 1. Compute Striker's gross pay and net pay for the week. Assume earnings to date are $16,000. (Round all amounts to the nearest cent.) Begin by computing Striker's gross pay for the week. X More info Requirements For all payroll calculations, use the following tax rates and round amounts to the nearest cent: 1. Compute Striker's gross pay and net pay for the week. Assume earnings to date are $16,000. Employee: 2. Journalize Frosty World's wages expense accrual for Striker's work. An explanation is not required. OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: 3. Journalize the subsequent payment of wages to Striker. OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% on all earnings; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. Print Done Print Done
Begin by computing Stanton's gross pay for the week. Straight-time pay for 40 hours $ Overtime pay for 11 hours Gross Pay Compute Stanton's net pay for the week. (Round all amounts to the nearest cent.) Gross pay $ Withholding deductions: Employee income tax Employee OASDI tax Employee Medicare tax Employee contribution to United Way Total withholdings Net (take-home) pay
Requirement 2. Journalize Frosty Boy's wages expense accrual for Stanton's work. An explanation is not required. (Record debits first, then credits. Exclude explanations from journal entries.) Date Accounts Debit Credit Wages Expense Employee Income Taxes Payable FICA-OASDI Taxes Payable FICA-Medicare Taxes Payable United Way Payable Wages Payable Requirement 3. Journalize the subsequent payment of wages to Stanton. (Record debits first, then credits. Exclude explanations from journal entries.) Date Accounts Debit Credit Wages Payable Cash
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