Details
The payroll records of a company provided the following data for the weekly pay period ended December 7:
| Employee | Earnings to End of Previous Week | Gross Pay | Federal Income Taxes | Medical Insurance Deduction | Union Dues | United Way |
| Ronald Arthur | $ 54,000 | $1,200 | $216 | $125 | $15 | $15 |
| John Baines | 40,500 | 900 | 162 | 125 | 15 | 30 |
| Ted Carter | 45,000 | 1,000 | 180 | 150 | -0- | 20 |
The FICA Social Security tax rate is 6.2% and the FICA Medicare tax rate is 1.45% on all of this week’s wages paid to each employee. The federal and state unemployment tax rates are 0.8% and 5.4%, respectively, on the first $7,000 paid to each employee.
1. Calculate the take home pay for each employee for the week ended December 7th.
2. Prepare the journal entry to record the employee payroll expenses and liabilities.
3. Prepare the journal entry to record the employer payroll taxes expense.
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