payroll transactions

Module 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 template

The 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 pay