Employee: OASDI: 6.6% on first $112,000 earned; Medicare: 1.45% up to $200,000, 2.4% on earnings above $200,000.
Employer: OASDI: 6.6% on first $112,000 earned; Medicare: 1.45%; FUTA: 0.7% on first $9,000 earned; SUTA: 6% on first $9,000 earned.
Nicole Zern works for CCC all year and earns a monthly salary of $14,600. There is no overtime pay.
Nicole has a federal witholding rate on gross pay of 19%. In addition to payroll taxes, Nicole elects to contribute 2% monthly to the United Way.
CCC also deducts $135 monthly for co-payment for a health insurance premium. As of September 30, Nicole had $105,000 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 14,600.00 Subcategory,Less: FIT 2,774.00 QASDI 434.00 Medicare 211.70 United Way 292.00 Health Ins. 135.00Single line NET PAY Single line10,753.30 Date Description Debit Credit Salary Expense 14,600.00 FIT Payable 2,774.00 QASDI Tax Payable 434.00 M-Care Tax Payable 211.70 United Way Payable 292.00 Health Ins. Payable 135.00 Salaries Payable 10,753.30 Salaries Payable 10,753.30 Cash 10,753.30