Star Wars Company pays its office employee payroll weekly

P13-3 (Payroll Tax Entries) Star Wars Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because August is their vacation period, vacation pay is also listed.

Employee Earnings to July 31 Weekly Pay Vacation Pay to be Received in Aug
Mark Hamell $4,200 $180 -----------
Carrie Fisher $3,500 150 $300
Harrison Ford $2,700 110 $220
Alec Guinness $7,400 250 -----------
Peter Cushing $8,000 290 $580

Assume that the federal income tax withheld is 10% of wages. Union dues withheld are 2% of wages. Vacations are taken the second and third weeks of August by Fisher, Ford, and Cushing. The state unemployment tax rate is 2.5% and the federal is 0.8%, both on a $7,000 maximum. The F.I.C.A. rate is 7.65% on employee and employer on a maximum of $97,500 per employee. In addition, a 1.45% rate is charged both employer and employee for an employee’s wage in excess of $97,500.

Instructions
Make the journal entries necessary for each of the four August payrolls. The entries for the payroll and for the company’s liability are made separately. Also make the entry to record the monthly payment of accrued payroll liabilities.

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In order to encourage employee ownership of the company's $1 par common shares, Washington Distribution permits any of its employees

E 19-9 Employee share purchase plan

In order to encourage employee ownership of the company's $1 par common shares, Washington Distribution permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 15% discount. During March, employees purchased 50,000 shares at a time when the market price of the shares on the New York Stock Exchange was $12 per share.

Required:
Prepare the appropriate journal entry to record the March purchases of shares under the employee share purchase plan.

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Marty is an employee of Apricot, Inc

Marty is an employee of Apricot, Inc. Marty incurs the following expenses related to entertainment of his clients in 2010:

Dues to a country club $4,500 (The country club was used for business 25 days of the total 75 days that it was used.)
Business meals at the country club 850
Dues to a tennis club 1,000 (The club was used 75 percent for directly related business.)
Tennis fees (personal use) 260
Business meals at various restaurants 2,250

a. How much is Marty's deduction for entertainment expenses for 2010 (before the 2 percent of adjusted gross income limitation)?
b. For each item above that you believe is not allowed as a deduction, explain the reason it is not allowed


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4-2A Use the percentage method to compute the federal income taxes to withhold from the wages or salaries of each employee

4-2A Use the percentage method to compute the federal income taxes to withhold from the wages or salaries of each employee.
Employee No.
Employee Name
Marital Status
No. of Withholding
Allowances Gross Wage or Salary
Amount
to Be Withheld
1 Amorosa, A. M 4 $1,610 weekly
2 Finley, R. S 0 825 biweekly
3 Gluck, E. S 5 9,630 quarterly
4 Quinn, S. M 8 925 semimonthly
5 Treave, Y. M 3 1,975 monthly

Click here for the solution: 4-2A Use the percentage method to compute the federal income taxes to withhold from the wages or salaries of each employee

4-6A Damerly Company (a California employer) wants to give holiday bonus check of $250 to each employee

4-6A Damerly Company (a California employer) wants to give holiday bonus check of $250 to each employee. Since it wants the check amount to be $250, it will need to gross-up the amount of the bonus. Calculate the withholding taxes and the gross amount of the bonus to be made to John Rolen if his cumulative earning for the year are $46,910. Besides being subject to social security taxes and federal income tax (supplemental rate), a 6% California income tax must be withheld on supplemental payments.

Click here for the solution: 4-6A Damerly Company (a California employer) wants to give holiday bonus check of $250 to each employee