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24. Assume that social security taxes are payable at a 6% rate with a maximum of $100,000 on earnings and Medicare taxes are payable at a 1.5% rate with no maximum earnings, If an employee earns $5,000 for the current week and the employee's year-to-date earnings before this week were $98,000, and the employee requests that $1,000 be withheld for Federal Income Taxes and $300 transferred to his 401k account, What is the employee's net check related to the current week? a. $4,505 b. $3,505 c. $3,805 d. $3,325

24. Assume that social security taxes are payable at a 6% rate with a maximum of $100,000 on earnings and Medicare taxes are payable at a 1.5% rate with no maximum earnings, If an employee earns $5,000 for the current week and the employee's year-to-date earnings before this week were $98,000, and the employee requests that $1,000 be withheld for Federal Income Taxes and $300 transferred to his 401k account, What is the employee's net check related to the current week? a. $4,505 b. $3,505 c. $3,805 d. $3,325

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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24. Assume that social security taxes are payable at a 6% rate with a maximum of $100,000 on earnings and Medicare taxes are payable at a 1.5% rate with no maximum earnings, If an employee earns $5,000 for the current week and the employee's year-to-date earnings before this week were $98,000, and the employee requests that $1,000 be withheld for Federal Income Taxes and $300 transferred to his 401k account, What is the employee's net check related to the current week? a. $4,505 b. $3,505 c. $3,805 d. $3,325
Transcribed Image Text:24. Assume that social security taxes are payable at a 6% rate with a maximum of $100,000 on earnings and Medicare taxes are payable at a 1.5% rate with no maximum earnings, If an employee earns $5,000 for the current week and the employee's year-to-date earnings before this week were $98,000, and the employee requests that $1,000 be withheld for Federal Income Taxes and $300 transferred to his 401k account, What is the employee's net check related to the current week? a. $4,505 b. $3,505 c. $3,805 d. $3,325
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