Answer questions 3 and 4 correctly please. Calculate FICA Taxes Note: all calculations both intermediate and final should be rounded to two decimal places at each calculation. 3: Charlie Lilly's filing status is married filing jointly, and he has earned gross pay of $1,850. Each period he makes a 401(k) contribution of 15% of gross pay and contributes$60 to a dependent care flexible spending account. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $84,200.4:Social Security tax = $Medicare tax = $Desmond Carroll's filing status is married filing separately, and he has earned gross pay of $4,120. Each period he makes a 403(b) contribution of 5% of gross pay andcontributes $90 to a cafeteria plan. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $97,200.Social Security tax = $Medicare tax = $

Answered: 3 Charlie Lilly's filing status is…

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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Answer questions 3 and 4 correctly please. Calculate FICA Taxes Note: all calculations both intermediate and final should be rounded to two decimal places at each calculation.

3: Charlie Lilly's filing status is married filing jointly, and he has earned gross pay of $1,850. Each period he makes a 401(k) contribution of 15% of gross pay and contributes
$60 to a dependent care flexible spending account. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $84,200.
4:
Social Security tax = $
Medicare tax = $
Desmond Carroll's filing status is married filing separately, and he has earned gross pay of $4,120. Each period he makes a 403(b) contribution of 5% of gross pay and
contributes $90 to a cafeteria plan. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $97,200.
Social Security tax = $
Medicare tax = $

Expert Solution

Step 1

ANSWER:-

Charlie Lilly's
Social Security tax = $ 5220.40
Medicare tax = $1220.90
Additional Medicare tax = Nil

Desmond Carroll's
Social Security tax = $ 6026.40
Medicare tax = $1409.40
Additional Medicare tax = Nil

STEP BY STEP EXPLANATION:-

TAX PAYER	PARTICULARS	AMOUNT IN USD
	Taxable Income	$84,200.00
Charlie Lilly	Social Security Tax	$5,220.40
	Medicare Tax	$1,220.90
	Additional Medicare tax (Jacob Finney's Filling status is married filing jointly and his income is below threshold limit)	NILL

	Taxable Income	$97,200.00
Desmond Carroll	Social Security Tax	$6,026.40
	Medicare Tax	$1,409.40
	Additional Medicare Tax (Desmond Carroll's filing status is married filing separately and his income is below threshold limit)	NILL

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