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1: An employee works 51 hours (51 - 40 were overtime hours) during a workweek in December of 2021. He earns $40/hour, with his employer paying 1.5 times the regular rate of pay for overtime hours. To date, he has earned $140,950 during the year. He has requested that his employer withhold 4% of gross pay, which is to be contributed to a 401(k) plan. Taxable income for federal income tax withholding = $ Taxable income for social security tax = $ Taxable income for medicare tax = $

1: An employee works 51 hours (51 - 40 were overtime hours) during a workweek in December of 2021. He earns $40/hour, with his employer paying 1.5 times the regular rate of pay for overtime hours. To date, he has earned $140,950 during the year. He has requested that his employer withhold 4% of gross pay, which is to be contributed to a 401(k) plan. Taxable income for federal income tax withholding = $ Taxable income for social security tax = $ Taxable income for medicare tax = $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PSa 3-2 Calculate Gross Pay & Taxable Pay

For each employee, first calculate gross pay. Then determine taxable income used to calculate federal income tax withholding, Social Security tax, and Medicare tax.

NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

 

 

1: An employee works 51 hours (51 - 40 were overtime hours) during a workweek in December of 2021. He earns $40/hour, with his employer paying 1.5 times the regular rate of pay for overtime hours. To date, he has earned $140,950 during the year. He has requested that his employer withhold 4% of gross pay, which is to be contributed to a 401(k) plan. Taxable income for federal income tax withholding = $ Taxable income for social security tax = $ Taxable income for medicare tax = $ 2: An employee works 38 regular hours during a workweek in August of 2021. He was hired six years ago, earns a salary of $116,400/year, and is exempt from the overtime provisions of the FLSA. To date, he has received no compensation beyond his annual salary. He has requested that his employer withhold 11% of gross pay, which is to be contributed to a 403(b) plan. Taxable income for federal income tax withholding = $ Taxable income for social security tax = $ Taxable income for medicare tax = $ 3: An employee works 52 hours (52 - 40 were overtime hours) during a workweek in December of 2021. He earns $11,000/month, with his employer paying 1.5 times the regular rate of pay for overtime hours. To date, he has earned $144,200 during the year. He has requested that his employer withhold 8% of gross pay, which is to be contributed to a 401(k) plan. Taxable income for federal income tax withholding = $ Taxable income for social security tax = $ Taxable income for medicare tax = $
Transcribed Image Text:1: An employee works 51 hours (51 - 40 were overtime hours) during a workweek in December of 2021. He earns $40/hour, with his employer paying 1.5 times the regular rate of pay for overtime hours. To date, he has earned $140,950 during the year. He has requested that his employer withhold 4% of gross pay, which is to be contributed to a 401(k) plan. Taxable income for federal income tax withholding = $ Taxable income for social security tax = $ Taxable income for medicare tax = $ 2: An employee works 38 regular hours during a workweek in August of 2021. He was hired six years ago, earns a salary of $116,400/year, and is exempt from the overtime provisions of the FLSA. To date, he has received no compensation beyond his annual salary. He has requested that his employer withhold 11% of gross pay, which is to be contributed to a 403(b) plan. Taxable income for federal income tax withholding = $ Taxable income for social security tax = $ Taxable income for medicare tax = $ 3: An employee works 52 hours (52 - 40 were overtime hours) during a workweek in December of 2021. He earns $11,000/month, with his employer paying 1.5 times the regular rate of pay for overtime hours. To date, he has earned $144,200 during the year. He has requested that his employer withhold 8% of gross pay, which is to be contributed to a 401(k) plan. Taxable income for federal income tax withholding = $ Taxable income for social security tax = $ Taxable income for medicare tax = $
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