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Employee: OASDI: 6.2% on first $117,000 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000.
Employer: OASDI: 6.2% on first $117,000 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned.
Nicole Zern works for CCC all year and earns a monthly salary of $14,500. There is no overtime pay.
Nicole has a federal witholding rate on gross pay of 20%. In addition to payroll taxes, Nicole elects to contribute 4% monthly to the United Way.
CCC also deducts $135 monthly for co-payment for a health insurance premium. As of September 30, Nicole had $109,800 of cummulative earnings.
1. Compute Nicole's net pay for the month.
Description Amount Subcategory, Gross Pay Subcategory,Less: FIT QASDI Medicare United Way Health Ins. Single line NET PAY Single line
2. Journalize the accrual of salaries expense and the payments related to the employment of Nicole Zern.
Date Description Debit Credit Description Amount Subcategory, Gross Pay 14,500.00 Subcategory,Less: FIT 2,900.00 QASDI 899.00 Medicare 210.25 United Way 580.00 Health Ins. 135.00Single line NET PAY Single line9,775.75 Date Description Debit Credit Salary Expense 14,500.00 FIT Payable 2,900.00 QASDI Tax Payable 899.00 M-Care Tax Payable 210.25 United Way Payable 580.00 Health Ins. Payable 135.00 Salaries Payable 9,775.75 Salaries Payable 9,775.75 Cash 9,775.75