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Task 7

Accounting

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Task 7.1- Payroll record

Instructions

After you have read and understood the learning resources in this module, work through the following exercises using Chapter 11, “Current Liabilities and Payroll” from the textbook. Do in excel.

 

1. Prepare the New Pharmacy payroll record with the following columns: employee name, number of hours worked, hourly wage, weekly gross wage, social security discount, Medicare discount, amount of state taxes and savings of retirement.
2. Calculate the gross salary of each employee.
3. Calculate the amount withholding from Social Security and Medicare.
4. Calculate the net pay for each employee.
5. Jornalize the entry to record the payroll.

The New Pharmacy pays for overtime hours and a half. It does not pay overtime to employees who are paid by salary. The company has 10 employees and the information on the hours worked is as follows:

 

Name of the employee	Hours worked	Hourly Wage	Weekly Salary	Withdrawal payment	Union payment
Juan Del Pueblo	45	$8.50		$21.93	$15
Ramonita Ramirez	42	11.50		37.12	Managerial, does not pay a fee.
Brenda Montalvo	50		$1,100	88.00	Managerial, does not pay a fee.
Camilo Monge	43	7.25		23.02	15
Jorge Emanuelli	42	25.00		92.00	15
Mariel Estrada	50	10.00		48.00	15
Emmanuel  Reyes	38	8.00		25.60	15
Ernesto Ramirez	45	8.25		26.40	15
Daniela Morales	39	10.75		32.68	15
Angel Carrasquillo	40		860	68.80	Managerial, does not pay a fee.

 

 

 

Task 7.2-Withholdings

Instructions

After having read and understood the learning resources in this module, work through the following exercises using chapter 11, “Current liabilities and payroll,” from the textbook. Do in excel.

 

Part 1

 

After evaluating the information provided by the La Nueva Era bookstore employees:

 

1. Determine what are the amounts that must be reported in the employees' W2.
2. Calculate the Social Security and Medicare payment that the employer must make.
3. Calculate the state unemployment that the employer must pay at the rate of 6% of the first $ 10,000 the employee earns.
4. Make the entries to the wage related to the debts contracted with the different agencies in contributions by the employer.

 

Name of the employee	Weekly salary	Withdrawal payment
Juan del Pueblo	$1,250.00	$21.93
Ramonita Ramírez	950.00	37.12
Brenda Montalvo	1,100.00	88.00
Camilo Monge	590.00	23.02
Jorge Emmanueli	860.00	92.00
Mariel Estrada	1,020.00	48.00
Emanuel Reyes	750.00	25.60
Ernesto Ramírez	640.00	26.40
Daniela Morales	1,000.00	32.68
Ángel Carrasquillo	860.00	68.80

 

 

 

Part 2

 

Supermarket Caridad offers its employees vacation benefits and contributes a contribution of 2% to a 401K. The employees had a total salary of $ 125,000 and vacation benefits of $ 28,460.

 

1. Calculate how much the employer contributes for the 401k.
2. Make salary entries related to vacation pay.
3. Make the salary entries related to the 401K contribution.

 

Part 3

 

It performs an analysis of the rules and laws that regulate the discounts and mandatory payments that payroll employers must make. You should write it in your own words in at least two five-sentence paragraphs.