ACCT110 – Accounting Principles I
Payroll Functions Assignment
This Assignment is worth 10% of your grade.
Deadline
Due by the end of Week 7 at 11:59 pm, ET.
Outcomes
Completing this Assessment will help you to meet the following:
Course Outcomes
- Solve a variety of payroll functions, including deductions, register, and earning records using Microsoft Excel.
- Interpret and apply Generally Accepted Accounting Principles (GAAP) to analyze, record, and report financial information for a service business using computerization.
Institutional Outcomes
- Quantitative and Scientific Reasoning – Follow established methods of inquiry and mathematical reasoning to form conclusions and make decisions.
Directions
Question# 1 – Payroll liabilities:
Win-Win company’s first weekly pay period of the year ends on January 8. On that date, the column totals in its payroll register show that sales employees earned $30,000 and office employees earned $20,000 in salaries.
The employees are to have withheld from their salaries FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $9,000 of federal income taxes, $2,000 of medical insurance deductions, and $1,000 of pension contributions.
No employee earned more than $7,000 in the first pay period.
Required:
Part 1a. Compute FICA–Social Security taxes payable and FICA–Medicare taxes
payable.
Part 1b. Prepare the journal entry to record Win-Win’s January 8 (employee) payroll
expenses and liabilities. (Round amounts to cents.)
Part 2. Prepare the journal entry to record Win-Win’s (employer) payroll taxes resulting
from the January 8 payroll.
Additional information to complete Part 2:
- Win-Win’s merit rating reduces its state unemployment tax rate to 3.4% of the first $7,000 paid to each employee.
- The federal unemployment tax rate is 0.6%.
Required: Be sure to include a description for each journal entry
Required: Be sure to show all work for your calculations. Use the Excel template provided to complete your assignment.
Question# 2 – Payroll register:
Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $117,000 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay.
Also, for the first $7,000 paid to each employee, the company’s FUTA taxes are 0.6% and SUTA taxes are 6.20%.
The company is preparing its payroll calculations for the week ended August 25.
Payroll records show the following information for the company’s four employees:
In addition to gross pay, the company must pay one-half of the $96 per employee for weekly health insurance. Each employee pays the remaining one-half of the weekly health insurance.
The company also contributes an extra 8% of each employee’s gross pay (at no cost to employees) to a pension fund.
Required:
Part 1. Prepare the Payroll Register below for the week ended August 25 to show each employee’s net (take home) pay. Round your calculations and final answers to 2 decimal places.
Required: Be sure to show all work for your calculations. Use the Payroll Register Excel template provided to complete your assignment.
Part 2. Calculate the employer’s FUTA tax for Chee. What is the amount of this tax?
Part 3. Calculate the employer’s SUTA tax for Chee. What is the amount of this tax?
Required: Be sure to show all work for your calculations. Use the Excel template provided to complete your assignment.
| ACCT110 – Payroll Functions Rubric | ||||
| Criteria | Exceeds Expectations | Meets Expectations | Needs Improvement | Points |
| Solve a variety of payroll functions, including deductions, register, and earning records 80 points |
53-80
points
Submitted without errors in each of the submissions: • FICA taxes • Employee payroll expenses and liabilities journal entries • Employer payroll tax journal entries • Payroll register • FUTA tax • SUTA tax |
26-52
points
Submitted with minor errors, in each of the submissions: • FICA taxes • Employee payroll expenses and liabilities journal entries • Employer payroll tax journal entries • Payroll register • FUTA tax • SUTA tax |
0-25
points
Did not submit or missing a significant amount of data; numerous errors in each of the submissions: • FICA taxes • Employee payroll expenses and liabilities journal entries; journal entries are not in proper form, unbalanced, or missing a description • Employer payroll tax journal entries; journal entries are not in proper form, unbalanced, or missing a description • Payroll register • FUTA tax • SUTA tax |
|
| Mechanics 20 points | 14-20 points Student makes minimal errors (0-1) in grammar, spelling, and punctuation. Errors do not distract reader or cloud meaning of the message. Writing is clear with no “text” or “chat” language | 7-13 points Student makes some errors (2-3) in grammar, spelling, and punctuation. Errors distract reader and/or cloud meaning of the message. Some “text” or “chat” language is used |
0-6
points
Student
did not submit or makes several errors (4 or more) in grammar,
spelling, and punctuation. Errors distract reader and/or cloud
meaning of the message. Excessive “text” or “chat”
language is used
|
|
| Instructor Comments: |
| Total Points: |
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