This document contains a continuing payroll problem to calculate payroll taxes for employees. It provides a partially completed payroll register and instructions to calculate taxable earnings, employee and employer FICA taxes using OASDI and HI rates. Formulas are included to calculate the totals for each tax. Journal entries are also provided to record the payroll taxes expense and related liabilities.

1. Written ExerciseModule 04 Written ExerciseFor this exercise,
go to http://www.eftps.gov to search for “Electronic Federal
Tax Payments” and go to http://www.ssa.gov/pubs/10022.html
to search for “self-employment income”. Discuss the following
questions:Instructor Feedback1How long does it take a taxpayer
to enroll in the Electronic Federal Tax Payment System
(EFTPS)?2What are the advantages of the EFTPS?3How is self-
employment income treated differently than income earned
when you work for an employer?4How do you report self-
employment income?
Payroll ProblemsModule 04 Payroll ProblemsProblem 4.1An
employee earns $900 per week. Compute the employee portion
of theInstructor FeedbackFICA taxes. Assume that the OASDI
rate is 5.9% and the HI rate is 1.5%.Determine the following
taxes:Employee OASDIEmployee HIProblem 4.2An employee
earns $3,500 a month. Compute the employee portion of
theInstructor FeedbackFICA taxes. Assume that the OASDI
rate is 7% and the HI rate is .45%.Determine the following
taxes:Employee OASDIEmployee HIProblem 4.3An employee
earns $1,100 a month. Compute the employee and
employerInstructor Feedbackportion of the FICA taxes. Assume
that the OASDI rate is 5.95% and the HI rate is 1 .25%.
Determine the following taxes:Employee OASDIEmployee
HIEmployer OASDIEmployee HIProblem 4.4An employee earns
$1,800 per week and has earned 112,800 year to date.Instructor
FeedbackCompute the employee and employer portions of the
FICA taxes. Assumethat the OASDI rate is 6.35% and the HI
rate is 1.15%. Also assume that thetaxable wage limit for
OASDI is the first $113,500 of wages earned for the
year.Determine the following taxes:Employee OASDIEmployee
HIEmployer OASDIEmployee HIProblem 4.5An employee earns
4,200 a month and has earned 111,700 year to date.Instructor
FeedbackCompute the employee and employer portions of the
FICA taxes. Assumethat the OASDI rate is 6.25% and the HI

2. rate is 1.25%. Also assume that thetaxable wage limit for
OASDI is the first $112,500 of wages earned for the
year.Determine the following taxes:Employee OASDIEmployee
HIEmployer OASDIEmployee HIProblem 4.6The wags for
several employees are listed below. Assume that the OASDI
rate is 6.4% and the HI rate is 2%.Instructor
FeedbackDetermine the taxable wages for one biweekly pay
period (two weeks) and determine the FICA taxesfor the
employee and the employer.TaxableFICA
TaxesEmployeeWagesWagesOASDIHINo. 1$620 weeklyNo.
2$680 weeklyNo. 3$4,200 monthlyNo. 4$5,300 monthlyNo.
5$5,800 monthlyNo. 6$48,000 annuallyNo. 7$52,000
annuallyTotalsEmployer's OASDIEmployer's HI
Continuing Payroll ProblemContuing Problem InstructionsRefer
to the partially completed payroll register from last week. You
will now determine the amount of FICA taxes for the employee
and the employer for the pay period ending January 7. 1. In the
Taxable Earnings columns, record the amount of each
employee’s weekly earnings that is subject to FICA taxes. 2.
Using the taxable earnings, compute the OASDI (5.4%) and HI
(.65%) taxes for each employee and record in the appropriate
column. 3. Below the worksheet, in the space provided, use the
total wages to calculate the employer's FICA obligation. Note
the employer's FICA taxes will be used in module 10 for the
journal entry. Keep your partially completed payroll register
for use in the next module.
Continuing Problem WorksheetContinuing Problem
WorksheenNorth Country Hotel and ResortPayroll RegisterFor
the Period Ending: Jan. 07, 20XXNo.EmployeeMarital
StatusAllow.Regular EarningsOvertime EarningsDeductionsNet
PayTaxable
EarningsOASDIHIFITSITSUTACITSIMPLEGROUPHEALTHN
et HoursHourly RateEarningsHoursHourly RateEarningsTotal
EarningsGroup LifeHealth Plan401K /
SimpleFICAFITSITCITSUTACheck
No.AmountOASDIHIFUTASUTA0.0620.01450.03070.00070.03

3. INSINSpayoasdihifutasutaOASDIHI300Adams,
Nikki2131330030018.60
Mark Sears: Enter as a formula of taxable earnings x OASDI
rate
4.35
Mark Sears: Enter as a formula of taxable earnings x HI rate
17.009.210.219.0020.000.851.65219.13300.00300.00300.00300.
00111Barr,
Stephanie2131429087.04377.0423.385.4734.0011.580.2611.315
0.000.851.65238.55377.04377.04377.04377.04208Duginski,
Samuel21315303.75303.7518.834.40-
09.330.219.1140.000.851.65219.36303.75303.75303.75303.751
98Glander, Morgan2131631671.1387.124.005.61-
011.880.2711.6150.000.851.65281.22387.10387.10387.10387.1
0189Hines,
Terrance2131739039024.185.6619.0011.970.2711.7020.00-
01.65295.57390.00390.00390.00390.0068Jama,
Adamo2131851524.15539.1533.437.8211.0016.550.3816.1740.0
00.851.65411.30539.15539.15539.15539.1545Lee,
Min21319392.31392.3124.325.69-
012.040.2711.7750.000.851.65285.71392.31392.31392.31392.3
117Rorberts,
Tammi21320542.31542.3133.627.8647.0016.650.3816.2760.00-
01.65358.88542.31542.31542.31542.3112Vick,
Tomika21321348.4652.28400.7424.855.81-
012.300.2812.0230.000.851.65312.98400.74400.74400.74400.7
49Yo,
Margaret213221000100062.0014.5024.0030.700.7030.0080.000.
851.65755.601,000.001,000.001,000.001,000.00
Totals4,397.83
Mark Sears: Enter as formula totaling column
234.57

4. Mark Sears: Enter as formula totaling column
4,632.40
Mark Sears: Enter as formula totaling column
287.21
Mark Sears: Enter as formula totaling column
67.17
Mark Sears: Enter as formula totaling column
152.00
Mark Sears: Enter as formula totaling column
142.21
Mark Sears: Enter as formula totaling column
3.24
Mark Sears: Enter as formula totaling column
138.97
Mark Sears: Enter as formula totaling column
440.00
Mark Sears: Enter as formula totaling column
6.80
Mark Sears: Enter as formula totaling column
16.50
Mark Sears: Enter as formula totaling column
3,378.29
Mark Sears: Enter as formula totaling column
4,632.40

5. Mark Sears: Enter as formula totaling column
4,632.40
Mark Sears: Enter as formula totaling column
4,632.40
Mark Sears: Enter as formula totaling column
4,632.40
Mark Sears: Enter as formula totaling column
Mark Sears: Enter as a formula of taxable earnings x OASDI
rate
Mark Sears: Enter as a formula of taxable earnings x HI rate
Mark Sears: Enter as formula totaling column
Mark Sears: Enter as formula totaling column
Mark Sears: Enter as formula totaling column
Mark Sears: Enter as formula totaling column
Mark Sears: Enter as formula totaling column

6. Mark Sears: Enter as formula totaling column
Mark Sears: Enter as formula totaling column
JournalDateAccountDebitCreditTaxableOASDI
EarningsRateTax01/07/20XXSalaries and Wages
ExpenseOASDI4,632.40Employee FIT Payable287.21Employee
SIT PayableHI Tax67.17TaxableEmpoyee SUTA
PayableHI152.00EarningsRateNet FUTAEmployee CIT
Payabale142.214,632.400.00627.79FICA - OASDI
Payable3.24SUTAFICA - HI PayableFUTA
Tax138.974,632.400.036785170.40401K Contributions
PayableFUTA440.00Group Insurance Premiums
Payable6.80Health Insurance Premiums PayableSUTA
Tax16.50Salaries and Wages
PayableSUTA3,378.2901/07/20XXPayroll Taxes
Expense552.58FICA - OASDI Payable287.21FICA - HI
Payabale67.17FUTA Taxes Payable27.79SUTA Taxes
Payable170.4001/14/20XXSalaries and Wages
Payable3,378.29Cash3,378.29