Survey Accounting

Harrow Consulting Firm is a company located in Miami, FL. They have the following four employees: Jada T. (she/her), Lauren F (they/their), William, M. (he/him) and Monica (she /her). Harrow pays their employees on a weekly basis. All employees submitted a Form W-4 for 2020 or later. Employees are paid time-and-a-half for work in excess of 40 hours per week. Florida does not collect state income tax.

Employee payroll data is as follows:

• Jada received a salary of $2000 during the week of June 24 through June 30.
• Lauren worked 40 hours during the week of June 24 through June 30. Their rate of pay is $ 19 per hour.
• William worked 42 hours during the week of June 24 through June 30. His rate of pay is $17 per hour.
• Monica worked 40 hours during the week of June 24 through June 30. Their rate of pay is $16 per hour.

Their wages are subject to the following deductions:

1. Federal income tax (FIT)
2. Social Security tax (FICA)
3. Medicare tax (FICA)
4. State Income tax (SIT), if applicable
5. Individual Health Insurance Contribution, $100 for salary employees and $50 for hourly employees
6. In addition, the following are deducted from the specified employee:

• Jada makes a charitable contribution of $20 per pay check.
• Jada and William have $50 deducted from their pay for 401K.

Additional Information:

• Federal Income Tax is taxable at a rate of !5% for salary employees and 10% for hourly employees.

• The Social Security tax rate is 6.2 percent. Taxable earnings for Social Security are based on the first $142,800 (in 2021).
• The Medicare tax rate is 1.45 percent. Taxable earnings for Medicare are based on all earnings.

What you must do:

1.  Complete the payroll register below for each employee by computing the following for each:

a) Current Period Earnings- regular (to include overtime where applicable)

b) Federal Income tax

c) OASDI

d) Medicare

e) Health Insurance Deduction

f) 401(k) Deduction

g) Charitable Deduction

h) Total Withholdings

i) Net Pay