For all payroll calculations, use the following tax rates and round amounts to the nearest cent.

Employee: OASDI: 6.2% on first $114,000 earned; Medicare: 1.45% up to $220,000, 2.35% on earnings above $220,000.

Employer: OASDI: 6.2% on first $114,000 earned; Medicare: 1.45%; FUTA: 0.6% on first $9,000 earned; SUTA: 5.4% on first $9,000 earned.

Keith Castro manages a Taco House drive-in. His straight-time pay is $6 per hour, with time-and-a-half for hours in excess of 40 per week.

Castro payroll deductions include withheld federal income tax of 16% , FICA tax, and a weekly deduction of $5 for a charitable contribution to the United Way.

Castro worked 60 hours during the week.

1. Compute Castro's gross pay and net pay for the week. Earnings to date are $12,000.

Base rate X Regular hour =
X =
OT Rate X OT Hours =
X =
Gross pay =

Monthly Net Pay

Description	Amount
Subcategory,
Gross Pay
Subcategory,Less:
FIT
OASDI
Medicare
United Way	Single line
NET PAY	Single line

2 Journalize Taco House wages expense accrual for Castro's work.

3. Journalize the subsequent payment of wages to Castro.

Journal

Date	Description	Debit	Credit
	A/PA/RCashFIT PayableHealth Ins. PayableM-Care Tax PayableOASDI Tax PayablePayroll PayablePayroll Tax ExpenseSalaries PayableSalary ExpenseSit PayableUnited Way PayableWages ExpenseWages Payable
	A/PA/RCashFIT PayableHealth Ins. PayableM-Care Tax PayableOASDI Tax PayablePayroll PayablePayroll Tax ExpenseSalaries PayableSalary ExpenseSit PayableUnited Way PayableWages ExpenseWages Payable
	A/PA/RCashFIT PayableHealth Ins. PayableM-Care Tax PayableOASDI Tax PayablePayroll PayablePayroll Tax ExpenseSalaries PayableSalary ExpenseSit PayableUnited Way PayableWages ExpenseWages Payable
	A/PA/RCashFIT PayableHealth Ins. PayableM-Care Tax PayableOASDI Tax PayablePayroll PayablePayroll Tax ExpenseSalaries PayableSalary ExpenseSit PayableUnited Way PayableWages ExpenseWages Payable
	A/PA/RCashFIT PayableHealth Ins. PayableM-Care Tax PayableOASDI Tax PayablePayroll PayablePayroll Tax ExpenseSalaries PayableSalary ExpenseSit PayableUnited Way PayableWages ExpenseWages Payable
	A/PA/RCashFIT PayableHealth Ins. PayableM-Care Tax PayableOASDI Tax PayablePayroll PayablePayroll Tax ExpenseSalaries PayableSalary ExpenseSit PayableUnited Way PayableWages ExpenseWages Payable
	A/PA/RCashFIT PayableHealth Ins. PayableM-Care Tax PayableOASDI Tax PayablePayroll PayablePayroll Tax ExpenseSalaries PayableSalary ExpenseSit PayableUnited Way PayableWages ExpenseWages Payable
	A/PA/RCashFIT PayableHealth Ins. PayableM-Care Tax PayableOASDI Tax PayablePayroll PayablePayroll Tax ExpenseSalaries PayableSalary ExpenseSit PayableUnited Way PayableWages ExpenseWages Payable