Question

1. Which of the following is true of good internal controls over payroll?

A.

Disbursement of paychecks should not be separate from the function of maintaining payroll records.

B.

Accounting for payroll should be separate from hiring and firing of employees.

C.

Hiring and firing employees should not be separated from accounting and from disbursing paychecks.

D.

Cash receipts from customers should be separated from the accounting for accounts receivable.

2. Sean's gross pay for this month is $8,750. His gross year−to−datem pay, prior to this month, totaled $113,000.

Sean's rate for federal income tax is 24 %. His voluntary deductions total $1,000. What is Sean's net pay? (Assume an OASDI rate of 6.2 %, applicable on the first $118,500 earnings, and a Medicare rate of 1.45 %, applicable on all earnings. Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

a. 6182

b. 6650

c. 5650

d. 5182

3. Hank earns $16.50 per hour with time−and−a−half for hours in excess of 40per week. He worked 50 hours at his job during the first week of March 2018. Hank pays income taxes at 15 % and 7.65 % for OASDI and Medicare. All of his income is taxable under FICA. Determine Hank's net pay for the week. (Do not round any intermediate calculations, and round your final answer to the nearest cent.)

a. 549.86

b. 701.95

c. 771.38

d. 574.61

Answer #1

1 | |||

Accounting for payroll
should be separate from hiring and firing of
employees. |
|||

Option B is correct | |||

2 | |||

Gross Pay | 8750 | ||

Less: Withholdings | |||

OASDI tax | 341 | =(118500-113000)*6.2% | |

HI tax | 127 | =8750*1.45% | |

Federal income tax | 2100 | =8750*24% | |

Voluntary deductions | 1000 | ||

3568 | |||

Sean's net pay |
5182 |
||

Option D is correct | |||

3 | |||

Gross Pay | 907.5 | =(40*16.5)+(10*16.5*1.5) | |

Less: Withholdings | |||

OASDI and Medicare tax | 69.42 | =907.5*7.65% | |

Federal income tax | 136.13 | =907.5*15% | |

205.55 | |||

Hank's net pay |
701.95 |
||

Option B is correct |

1. Calculate the employer's payroll taxes
expense. Round your answer to the nearest cent.
2. Prepare the journal entry to record the
employer's payroll taxes expense for the week ended June 21 of the
current year. Round your answers to the nearest cent. If an amount
box does not require an entry, leave it blank.
Portions of the payroll register for Kathy's Cupcakes for the
week ended June 21 are shown below. The SUTA tax rate is 5.4%, and
the...

alculate Payroll
K. Mello Company has three employees-a consultant, a computer
programmer, and an administrator. The following payroll information
is available for each employee:
ConsultantComputer ProgrammerAdministrator
Regular earnings rate$2,310 per week $32 per hour $50 per
hour
Overtime earnings rateNot applicable 2 times hourly rate 1.5
times hourly rate
Federal income tax withheld$910 $242 $510
For hourly employees, overtime is paid for hours worked in
excess of 40 hours per week.
For the current pay period, the computer programmer worked...

K. Mello Company has three employees-a consultant, a computer
programmer, and an administrator. The following payroll information
is available for each employee:
Consultant
Computer Programmer
Administrator
Regular earnings rate
$2,510 per week
$28 per hour
$50 per hour
Overtime earnings rate
Not applicable
2 times hourly rate
1.5 times hourly rate
Federal income tax withheld
$920
$240
$495
For hourly employees, overtime is paid for hours worked in
excess of 40 hours per week.
For the current pay period, the...

K. Mello Company has three employees-a consultant, a computer
programmer, and an administrator. The following payroll information
is available for each employee:
Consultant
Computer Programmer
Administrator
Regular earnings rate
$2,910 per week
$32 per hour
$42 per hour
Overtime earnings rate
Not applicable
2 times hourly rate
1.5 times hourly rate
Federal income tax withheld
$930
$249
$505
For hourly employees, overtime is paid for hours worked in
excess of 40 hours per week.
For the current pay period, the...

The following summary data for the payroll period ended December
27, 2015, are available for Cayman Coating
Co.:
Gross pay
$
95,000
FICA tax withholdings
?
Income tax withholdings
14,710
Group hospitalization insurance
1,930
Employee contributions to pension plan
?
Total deductions
27,177
Net pay
?
Additional information:
For employees, FICA tax rates for 2015 were 7.65% on the first
$118,500 of each employee’s annual earnings. However, no employees
had accumulated earnings for the year in excess of the $118,500...

Vulcra, Inc., has a semimonthly payroll of $67,160 on September
15, 20--. The total payroll is taxable under FICA Taxes-HI; $63,450
is taxable under FICA Taxes-OASDI; and $10,260 is taxable under
FUTA and SUTA. The state contribution rate for the company is 4.1%.
The amount withheld for federal income taxes is $9,949. The amount
withheld for state income taxes is $1,424.
Part A: Payment of the Wages, and the Payroll Taxes
a. Journalize the payment of the wages, and
record...

Calculate Payroll
K. Mello Company has three employees-a consultant, a computer
programmer, and an administrator. The following payroll information
is available for each employee:
Consultant
Computer Programmer
Administrator
Regular earnings rate
$3,010 per week
$30 per hour
$44 per hour
Overtime earnings rate
Not applicable
2 times hourly rate
1.5 times hourly rate
Federal income tax withheld
$910
$241
$495
For hourly employees, overtime is paid for hours worked in
excess of 40 hours per week.
For the current pay...

Calculate Payroll
K. Mello Company has three employees-a consultant, a computer
programmer, and an administrator. The following payroll information
is available for each employee:
Consultant
Computer Programmer
Administrator
Regular earnings rate
$2,310 per week
$34 per hour
$48 per hour
Overtime earnings rate
Not applicable
2 times hourly rate
1.5 times hourly rate
Federal income tax withheld
$915
$255
$515
For hourly employees, overtime is paid for hours worked in
excess of 40 hours per week.
For the current pay...

Calculate Payroll
K. Mello Company has
three employees-a consultant, a computer programmer, and an
administrator. The following payroll information is available for
each employee:
Consultant
Computer Programmer
Administrator
Regular earnings rate
$3,310 per week
$32 per hour
$44 per hour
Overtime earnings rate
Not applicable
2 times hourly rate
1.5 times hourly rate
Federal income tax withheld
$910
$244
$510
For hourly employees,
overtime is paid for hours worked in excess of 40 hours per
week.
For the current pay...

Calculate Payroll
Breakin Away Company has three employees—a consultant, a
computer programmer, and an administrator. The following payroll
information is available for each employee:
Consultant
Computer Programmer
Administrator
Regular earnings rate
$4,000 per week
$60 per hour
$50 per hour
Overtime earnings rate*
Not applicable
1.5 times hourly rate
2 times hourly rate
Number of withholding allowances
2
1
2
*For hourly employees, overtime is paid for hours
worked in excess of 40 hours per week.
For the current pay...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 25 minutes ago

asked 40 minutes ago

asked 48 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago