Payroll

(1) 
In November, gross earnings at the Humpty Dumpty
Riding Company were $100,000.  All
earnings are subject to 7.65% FICA taxes. 
Federal income tax withheld was $20,000, and State income tax withheld
was $1,600.  (1) Calculate net pay for November
and, (2) record the payroll.

(2) 
In March, the payroll supervisor determines that
gross earnings for Horseless Carriage Rides are $120,000.  All earnings are subject to 7.65% FICA taxes,
5.4% state unemployment taxes and, .8% Federal unemployment taxes.  Journalize the employers payroll taxes.

(3) 
The employee payroll records indicate the
following total earnings for 2 employees through the pay period ending December
10. 

Jim Smith $93,500  Lonnie Marshall $108,100

For the pay period ending December 31, 2015, each employees’
gross earnings are $4,500.  The FICA tax
rate is 7.65% on earnings up to $110,100. 
In other words, any income above $110,100 is not subject to FICA
tax.  Though we are not concerned with
Medicare in this problem, Medicare is 1.45% of earnings with no limit.

Calculate the FICA with holdings that should be made for each
employee for December 31.