162.An employee receives an hourly rate of $45, with time and a half for all hours worked in excess of 40 during theweek. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld,
$950; Social security tax rate, 6.0%; and Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% onthe first $7,000; federal unemployment compensation tax, 0.8% on the first $7,000.
Calculate the employer's payroll tax expense if:
(a) this is the first payroll of the year and the employee has no cumulative earnings for the year to date.
(b)the employee’s cumulative earnings for the year prior to this week equal $6,200.
(c)the employee’s cumulative earnings for the year prior to this week equal $118,700.
163.The following totals for the month of February were taken from the payroll register of Arcon Company:
Salaries expense
|
$13,000
|
Social security and Medicare taxes withheld
|
975
|
Income taxes withheld
|
2,600
|
Retirement savings
|
500
|
Salaries subject to federal and state unemployment taxes of 6.2%
|
4,000
|
(a)How much is the total payroll expense for Arcon Company for this payroll?
(b)Assume that the monthly salaries expense remains the same for the entire year and no employees are hired orfired during that time. Based on what you learned in Chapter 11 about payroll taxes, do you expect the total payrollexpense to stay the same every month? Explain.
164.According to a summary of the payroll of Sinclair Company, $505,000 was subject to the 6.0% social security taxand $545,000 was subject to the 1.5% Medicare tax. Also, $10,000 was subject to state and federal unemploymenttaxes.
(a)Calculate the employer’s payroll taxes using the following rates: State unemployment,
4.2%; Federal unemployment, 0.8%.
(b)Journalize the entry to record the accrual of the employer's payroll taxes.