Reference no: EM132720966
Problem - Carole Vohsen operates a pet grooming salon called Canine Coiffures. She has five employees, all of whom are paid on a weekly basis. Canine Coiffures uses a payroll register, individual employee earnings records, a journal, and a general ledger.
The payroll data for each employee for the week ended January 21, 20--, are given below. Employees are paid 1½ times the regular rate for work over 40 hours a week.
|
Name
|
Employee No.
|
No. of Allowances
|
Marital Status
|
Total Hours Worked Jan. 15-21
|
Rate
|
Total Earnings Jan. 1-14
|
|
DeNourie, Katie
|
1
|
2
|
S
|
44
|
$11.50
|
$1,058.00
|
|
Garriott, Pete
|
2
|
1
|
M
|
40
|
12.00
|
1,032.00
|
|
Martinez, Sheila
|
3
|
3
|
M
|
39
|
12.50
|
987.50
|
|
Parker, Nancy
|
4
|
2
|
M
|
42
|
11.00
|
957.00
|
|
Shapiro, John
|
5
|
2
|
S
|
40
|
11.50
|
931.50
|
Sheila Martinez is the manager of the Shampooing Department. Her Social Security number is 500-88-4189, and she was born April 12, 1969. She lives at 46 Darling Crossing, Norwich, CT, 06360. Martinez was hired September 1 of last year.
Canine Coiffures uses a federal income tax withholding table. A portion of this weekly table is provided in Figure 8-4. Social Security tax is withheld at the rate of 6.2% of the first $118,500 earned. Medicare tax is withheld at the rate of 1.45%, and city earnings tax at the rate of 1%, both applied to gross pay. Garriott and Parker each have $14 and DeNourie and Martinez each have $4 withheld for health insurance. DeNourie, Martinez, and Shapiro each have $15 withheld to be invested in the groomers' credit union. Garriott and Shapiro each have $18.75 withheld under a savings bond purchase plan.
Canine Coiffures' payroll is met by drawing checks on its regular bank account. This week, the checks were issued in sequence, beginning with No. 811.
Prepare a payroll register for Canine Coiffures for the week ended January 21, 20--. (In the Taxable Earnings/Unemployment Compensation column, enter the same amounts as in the Social Security column.) Total the amount columns, verify the totals, and rule with single and double lines.