Problem 10C: Payroll

Problem 10c: Payroll

1.Christos Skantzaris' business, Skantzaris Consulting Incorporated, has 5 employees who are paid one week after the week they work. As of September 8, each employee's gross earnings for the year were as follows.

Baker / $129,600
Colantuonio / $105,600
Gately / $32,400
Perry / $6,900
Smith / $4,800

For this year, the OASDI FICA tax rate is 6.2% of the first $106,800 of each employee’s gross pay. The Medicare FICA tax rate is 1.45% of each employee’s gross pay. Each employee has $6 withheld weekly for union dues.

Calculate the net pay for Skantzaris Consulting Incorporated’s employee Baker for the week ended September 15. Baker currently earns a salary of $3,600 per week. In addition to FICA taxes and union dues, the following were withheld from Baker’s weekly earnings: $720 for federal income taxes and $180 for state income taxes.

A) / $2,694.00
B) / $3,600.00
C) / $2,641.80
D) / $2,469.00
E) / $4,558.20

2.Christos Skantzaris' business, Skantzaris Consulting Incorporated, has 5 employees who are paid one week after the week they work. As of September 8, each employee's gross earnings for the year were as follows.

Baker / $129,600
Colantuonio / $105,600
Gately / $32,400
Perry / $6,900
Smith / $4,800

Calculate the net pay for Skantzaris Consulting Incorporated’s employee Colantuonio for the week ended September 15. Colantuonio currently earns a salary of $2,800 per week. In addition to FICA taxes and union dues, the following were withheld from Colantuonio’s weekly earnings: $550 for federal income taxes and $140 for state income taxes.

A) / $1,889.80
B) / $3,611.00
C) / $2,063.40
D) / $2,800.00
E) / $1,989.00

3.Christos Skantzaris' business, Skantzaris Consulting Incorporated, has 5 employees who are paid one week after the week they work. As of September 8, each employee's gross earnings for the year were as follows.

Baker / $129,600
Colantuonio / $105,600
Gately / $32,400
Perry / $6,900
Smith / $4,800

Calculate the net pay for Skantzaris Consulting Incorporated’s employee Gately for the week ended September 15. Gately worked 30 hours during the week at a wage rate of $30 per hour. In addition to FICA taxes and union dues, the following were withheld from Gately’ weekly earnings: $120 for federal income taxes and $45 for state income taxes.

A) / $900.00
B) / $660.15
C) / $616.95
D) / $1,139.85
E) / $715.95

4.Christos Skantzaris' business, Skantzaris Consulting Incorporated, has 5 employees who are paid one week after the week they work. As of September 8, each employee's gross earnings for the year were as follows.

Baker / $129,600
Colantuonio / $105,600
Gately / $32,400
Perry / $6,900
Smith / $4,800

Calculate the net pay for Skantzaris Consulting Incorporated’s employee Perry for the week ended September 15. Perry worked 15 hours during the week at a wage rate of $20 per hour. In addition to FICA taxes and union dues, the following were withheld from Perry’s weekly earnings: $40 for federal income taxes and $15 for state income taxes.

A) / $216.05
B) / $201.65
C) / $383.95
D) / $234.65
E) / $300.00

5.Christos Skantzaris' business, Skantzaris Consulting Incorporated, has 5 employees who are paid one week after the week they work. As of September 8, each employee's gross earnings for the year were as follows.

Baker / $129,600
Colantuonio / $105,600
Gately / $32,400
Perry / $6,900
Smith / $4,800

Calculate the net pay for Skantzaris Consulting Incorporated’s employee Smith for the week ended September 15. Smith worked 20 hours during the week at a wage rate of $10 per hour. In addition to FICA taxes and union dues, the following were withheld from Smith’s weekly earnings: $30 for federal income taxes and $10 for state income taxes.

A) / $261.30
B) / $151.10
C) / $200.00
D) / $138.70
E) / $129.10

6.The Skantzaris Consulting Incorporated’s payroll register for the week ended October 6 was as follows. Employees were paid on October 13.

Employee / Gross / FIT / SIT / OASDI / Medicare / Union / Net Pay
Baker / $3,900.00 / $780.00 / $195.00 / $0.00 / $56.55 / $6.00 / $2,862.45
Colantuonio / $2,900.00 / $550.00 / $145.00 / $0.00 / $42.05 / $6.00 / $2,156.95
Gately / $1,200.00 / $180.00 / $60.00 / $74.40 / $17.40 / $6.00 / $862.20
Perry / $400.00 / $50.00 / $20.00 / $24.80 / $5.80 / $6.00 / $293.40
Smith / $300.00 / $40.00 / $15.00 / $18.60 / $4.35 / $6.00 / $216.05
Totals / $8,700.00 / $1,600.00 / $435.00 / $117.80 / $126.15 / $30.00 / $6,391.05

Determine the Skantzaris Consulting Incorporated’s salaries and wages expense for the week ended October 6.

A) / $6,421.05
B) / $7,100.00
C) / $2,308.95
D) / $6,391.05
E) / $8,700.00

7.The Skantzaris Consulting Incorporated’s payroll register for the week ended October 6 was as follows. Employees were paid on October 13.

On October 13, when the Skantzaris Consulting Incorporated’s employees are paid, how much cash will they receive?

A) / $6,421.05
B) / $7,100.00
C) / $2,308.95
D) / $6,391.05
E) / $8,700.00

8.The Skantzaris Consulting Incorporated’s payroll register for the week ended October 6 was as follows. Employees were paid on October 13. All amounts withheld from employees will be paid in November.

By addition and subtraction, show the effects of the October 6 payroll on the Skantzaris Consulting Incorporated’s resources and sources of resources.

Resources / Sources of Borrowed Resources / Sources of Owner Invested Resources / Sources of Management Generated Resources
Assets / Liabilities / Stockholders’ Equity
A) / + $8,700.00 / - $8,700.00
B) / - $8,700.00 / - $8,700.00
C) / + $8,700.00 / + $8,700.00
D) / - $6,391.05 / - $6,391.05
E) / + $6,391.05 / - $6,391.05

9.The Skantzaris Consulting Incorporated’s payroll register for the week ended October 6 was as follows. Employees were paid on October 13. All amounts withheld from employees will be paid in November.

Prepare the journal entry to record the payroll for the week ended October 6.

Description / Debits / Credits
A) / Salaries and Wages Expense / $8,700.00
Employees’ Federal Income Taxes Withheld / $1,600.00
Employees’ State Income Taxes Withheld / $435.00
FICA Taxes Payable / $243.95
Union Dues Payable / $30.00
Cash / $6,391.05
B) / Salaries and Wages Expense / $6,391.05
Salaries and Wages Payable / $6,391.05
C) / Salaries and Wages Expense / $8,700.00
Employees’ Federal Income Taxes Withheld / $1,600.00
Employees’ State Income Taxes Withheld / $435.00
FICA Taxes Payable / $243.95
Union Dues Payable / $30.00
Salaries and Wages Payable / $6,391.05
D) / Salaries and Wages Expense / $6,391.05
Cash / $6,391.05
E) / No entry required

10.Skantzaris Consulting Incorporated has 5 employees who are paid one week after the week they work. The following information is available.

Employee / Earnings as of
September 1 / Earnngs for Week
Ended September 8
Baker / $126,000 / $3,600
Colantuonio / $98,000 / $2,800
Gately / $31,590 / $810
Perry / $6,500 / $400
Smith / $4,550 / $250
Totals / $266,640 / $7,860

For this year, the OASDI FICA tax rate is 6.2% of the first $106,800 of each employee’s gross pay.

Calculate the company’s payroll taxes expense for OASDI FICA taxes for the week ended September 8.

A) / $325.89
B) / $264.12
C) / $487.32
D) / $601.29
E) / $16,531.68

11.Skantzaris Consulting Incorporated has 5 employees who are paid one week after the week they work. The following information is available.

The Medicare FICA tax rate is 1.45% of each employee’s gross pay.

Calculate the company’s payroll taxes expense for Medicare FICA taxes for the week ended September 8.

A) / $113.97
B) / $601.29
C) / $61.77
D) / $325.89
E) / $3,866.28

12.Skantzaris Consulting Incorporated has 5 employees who are paid one week after the week they work. The following information is available.

Federal unemployment tax is .8% of the first $7,000 per employee.

Calculate the company’s payroll taxes expense for federal unemployment taxes for the week ended September 8.

A) / $31.20
B) / $5.20
C) / $62.88
D) / $52.00
E) / $377.28

13.Skantzaris Consulting Incorporated has 5 employees who are paid one week after the week they work. The following information is available.

State unemployment tax is 4% of the first $7,000 per employee.

Calculate the company’s payroll taxes expense for state unemployment taxes for the week ended September 8.

A) / $1,400.00
B) / $314.40
C) / $377.28
D) / $26.00
E) / $31.20