An Employee Receives an Hourly Rate of $15, with Time

question 137

Essay

An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $5,500; social security tax rate, 6.0%; and Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, 0.8% on the first $7,000. Prepare the journal entries to record the salaries expense and the employer payroll tax expense.

---

Definitions:

Due Process

A constitutional principle that ensures the government respects all legal rights owed to a person according to the law, including fair treatment through the normal judicial system.

Federal Preemption

A legal doctrine that allows federal law to take precedence over state laws in certain areas, preventing states from enacting conflicting legislation.

State Laws

Legal regulations and statutes enacted by individual states within a country, as opposed to federal laws.

Equal Protection

A principle found in the 14th Amendment to the United States Constitution, requiring that states guarantee the same rights, privileges, and protections to all citizens.