Assume That the Payroll Records of Erroll Oil Company Provided

question 10

Essay

Assume that the payroll records of Erroll Oil Company provided the following information for the weekly payroll ended November 30, 2018.
Additional information: All employees are paid overtime at time and a half for hours worked in excess of 40 per week. The FICA tax rate is 7.65% for the first $117,000 of each employee's annual earnings and 1.45% in excess of $117,000. The employer pays unemployment taxes of 6.2% (5.4% for state and .8% for federal) on the first $7,000 of each employee's annual earnings.
Instructions
(a) Prepare the payroll register for the pay period.
(b) Prepare general journal entries to record the payroll and payroll taxes.

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Definitions:

AGI Limitations

Thresholds based on Adjusted Gross Income that limit eligibility for certain tax deductions and credits.

AGI

Adjusted Gross Income; an individual's total gross income minus specific deductions, used to determine taxable income on a federal tax return.

Single

A filing status for unmarried taxpayers who do not qualify for any other filing status on their tax return.

American Opportunity Tax Credit

A refund for allowable educational fees paid for a qualifying scholar during their first four years of advanced education.