John’s Drug Store has four employees who are paid on an hourly basis plus time-and-a-half for all hours worked in excess of 40 hours a week. Payroll data for the week ended February 15, 2010, are presented below:
Employees: Hours Worked: Hourly Rate: Fed Inc Tax Withholdings: United Fund: The following tax rates are applicable:
J. Uddin 39 $12.00 $34.00 $0.00 State Income Tax 3.00%
B. Conway 42 11.00 20.00 10.00 State Unemployment Taxes 5.40%
S. Becker 44 10.00 51.00 5.00 Federal Unemployment Taxes 0.80%
L. Blum 46 10.00 36.00 5.00
J. Uddin and B. Conway are married. They claim 2 and 4 withholding allowances, respectively.
The first three employees are sales clerks (store wages expense). The fourth employee performs administrative duties (office wages expense).
(a) Prepare a payroll register for the weekly payroll. (Use the wage-bracket withholding table found in the text for federal income tax withholdings.)
(b) Journalize the payroll on February 15, 2010, and the accrual of employer payroll taxes.