Payroll Accounting and Internal Control
Project description
Chapter 11 – Payroll Accounting and Internal Control
ACC213 Summer 2014
Principals of Payroll Administration
Chapter 11 – Payroll Accounting and Internal Control
The transactions for Williamson Brothers, Inc. were analyzed, journalized, and posted for the third quarter of the fiscal year. You are to record the payroll transactions for the last quarter of the firm’s fiscal year. The last quarter begins on April 1, 2014.
Analyze and journalize the transactions described in the following narrative. Use the proper journal entry form, two-column journal as illustrated at end of problem. Omit the writing of explanations in the journal entries.
FUTA tax rate .6% of first $7000 – it is given in problem when limits are reached
SUTA tax rate 2.3% of first $7000 – it is given in problem when limits are reached
Narrative of Transactions:
Apr. 1. Paid the treasurer of the union $80 union dues withheld from workers’ earnings during March.
15. Payroll: $6,105. All wages and salaries fully taxable for Social Security and Medicare as well as withheld $565 for federal income taxes, $107.32 for state income taxes, and $50 for union dues.
15. Paid the treasurer of the state the amount of state income taxes withheld from workers’ earnings during the first quarter, $474.42.
15. Electronically transferred funds to remove the liability for FICA taxes and employees’ federal income taxes withheld on the March payrolls.
Employee withholding Social Security $733.15
Employee withholding Medicare $171.46
Employer match
FITW $1472.00
29. Payroll: $5,850. All wages and salaries are fully taxable for Social Security and Medicare as well as withheld $509 for federal income taxes, $128.90 for state income taxes, and $55 for union dues.
29. Filed the Employer’s Quarterly Federal Tax Return (Form 941) for the period ended March 31. No journal entry is required, since the FICA taxes and federal income taxes withheld have been timely paid.
29. Filed the state contribution return for the quarter ended March 31 and paid the amount to the state unemployment compensation fund, $840.50.
May 2. Paid the treasurer of the union the amount of union dues withheld from workers’ earnings during April.
13. Payroll: $5,810. All wages and salaries fully taxable for Social Security and Medicare as well as withheld $507 for federal income taxes, $125.05 for state income taxes, and $55 for union dues.
16. Electronically transferred funds to remove the liability for FICA taxes and federal income taxes withheld on the April payrolls.
31. Payroll: $6,060. All wages and salaries taxable for Social Security and Medicare as well as withheld $533 for federal income taxes, $119.00 for state income taxes, and $50 for union dues.
June 3. Paid the treasurer of the union the amount of union dues withheld from workers’ earnings during May.
15. Payroll: $6,380. All wages and salaries taxable for Social Security and Medicare, except only $5,000 is taxable under FUTA and SUTA, as well as withheld $549 for federal income taxes, $128.70 for state income taxes, and $50 for union dues.
15. Electronically transferred funds to remove the liability for FICA taxes and federal income taxes withheld on the May payrolls.
30. Payroll: $6,250. All wages and salaries taxable for Social Security and Medicare, except only $4,770 is taxable under FUTA and SUTA, as well as withheld $538 for federal income taxes, $127.60 for state income taxes, and $50 for union dues.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET AN AMAZING DISCOUNT 🙂