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Question 1
For all payroll calculations, use the following tax rates and round amounts to the nearest cent.

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.

Monthly Net Pay
DescriptionAmount
Subcategory,
Gross Pay
Subcategory,Less:
FIT
QASDI
Medicare
United Way
Health Ins.Single line
NET PAYSingle line


2. Journalize the accrual of salaries expense and the payments related to the employment of Nicole Zern.

Journal
DateDescriptionDebitCredit