Payroll Transactions Discussion Paper

Payroll Transactions Discussion PaperModule 05 Content
QB Cloud has become quite successful over the past months, so you’ve decided to hire two part-time employees to assist you with sales and office duties. In researching your computerized accounting program, you’ve found that it doesn’t include the options to perform payroll calculations and print paychecks. To computerize the payroll calculations and assist you in drafting the journal entries, you decide to use Microsoft Excel for the necessary payroll functions.
Complete the following using the Module 05 Payroll Transactions template
Calculate payroll for Karen Rodriguez and Adam Seyd for the June 14th and June 28th payrolls. These employees are paid bi-weekly, meaning every other week.
Journalize the transactions necessary to record the payroll.
Address the following questions:
What is the total cost to the company of having these two employees for the month of June?
What additional costs would be associated with adding one more employee for 10 hours per week at $15 per hour? Would it be more beneficial to add an additional part time employee or distribute the additional hours needed to the current part time employees? Explain.
Module 05 Payroll Transactions templateThe following information will be necessary in your calculations:
Employee Information:
Karen Rodriguez $18/hour hourly rate
June 14 24 hours worked
June 28 22 hours worked
Adam Seyd $16/hour hourly rate
June 14 15 hours worked
June 28 20 hours worked
Additional Tax and Withholding Information:
Employee Responsibility
Federal Income Tax: 10% of gross pay
State Income Tax 5% of gross pay
FICA Tax 7.65% of gross pay
Employer Responsibility
FICA Tax 7.65% of gross pay
State Unemployment none 2% of gross pay
Federal Unemployment 0.8% of gross paySheet1Module 05 Assignment – Payroll Transactions1. Calculate payroll for Karen Rodriguez and Adam Seyd for the June 14th and June 28th payrolls.These employees are paid bi-weekly, meaning every other week.CashFICA Tax PayableJune 14 PayrollKaren RodriguezAdam SeydTotalFederal Income Tax PayableGross PayState Income Tax PayableFICA TaxFederal Unemployment PayableFederal Income TaxState Unemployment PayableState Income TaxWages ExpenseNet PayPayroll Tax ExpenseJune 28 PayrollKaren RodriguezAdam SeydTotalGross PayFICA TaxFederal Income TaxState Income TaxNet Pay2. Journalize the transactions necessary to record the payrolls.DateAccountDebitCredit6/14Wages ExpenseFICA Tax PayableFederal Income Tax Payab;eState Income Tax PayableCash6/14Payroll Tax ExpenseFICA Tax PayableFederal Unemployment PayableState Unemployment Payable6/28Wages ExpenseFICA Tax PayableFederal Income Tax Payab;eState Income Tax PayableCash6/28Payroll Tax ExpenseFICA Tax PayableFederal Unemployment PayableState Unemployment PayableTotals3. Address the following questions:3a. What is the total cost to the company of having these two employees for the month of June?3b. What additional costs would be associated with adding one more employee for 10 hours per week at $15 per hour? Would it be more beneficial to add an additional part time employee or distribute the additional hours needed to the current part time employees? Explain.