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

question 49

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; all earnings are subject to social security tax; Social security tax rate, 6%; and Medicare tax rate, 1.5%; state unemployment tax, 5.4% on the first $7,000; federal unemployment tax, 0.8% on the first $7,000. Prepare the journal entries to record the salaries expense and the employer payroll tax expense. If required, round your answers to the nearest cent.

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Definitions:

Economic Integration

A process by which countries reduce trade barriers to enable more free flow of goods, services, and capital among each other, leading to increased economic interdependence.

Geographic Locales

Geographic locales refer to specific geographical areas or locations, each with its own unique characteristics and cultural practices.

Capitalism

An economic system where trade, industry, and the means of production are largely or entirely privately owned and operated for profit.

Globalization

The process of increasing interconnectedness and interdependence among countries worldwide through the exchange of goods, services, technology, and culture.