Reference no: EM132699281

Question - Aydin Lawn Service is considering hiring its first 'real' employee. The employee will earn $2000 weekly and Aydin Lawn Service will withhold $ 450 in income tax each week. The employee will also have the following payroll deductions:

Charitable fund contribution of 2% of total earnings

Life insurance of $30 per week.

The employer must pay 5.5% state payroll tax.

Required -

1) Calculate the amount of the employee's weekly net pay.

2) Journalise the entries to accrue the weekly payroll on 31 July 2020, to record the employer's payroll Taxes and to pay the payroll on 4 August 2020.