Answer:
monthly salary $11,900
income tax withholding 10%
United Way contribution 5%
health insurance $125
cumulative earnings until September 30 = $107,100
Brooke's net pay for October:
Gross pay $11,900
federal income tax withholding -$1,190
United Way contribution -$595
Social Security -$737.80
Medicare -$172.55
health insurance -$125
net pay = $9,079.65
October 31, 202x, wages and payroll taxes expense
Dr Wages expense
Dr FICA tax (OASDI) expense
Dr FICA tax (Medicare) expense
Cr Federal income tax withholding payable 1,190
Cr United Way contribution payable 595
Cr FICA tax (OASDI) withholding payable 737.80
Cr FICA tax (OASDI) payable 737.80
Cr FICA tax (Medicare) withholding payable 172.55
Cr FICA tax (Medicare) payable 172.55
Cr Health insurance 125
Cr Wages payable 9,079.65
No FUTA or SUTA tax expense because they only apply for the first $7,000 earned per year. Since we are not told if the employer also pays a % of the health insurance, then we cannot calculate it, nor any 401k contribution.
