An employee earned $43,300 working for an employer in the current year. The current rate for Federal Insurance Contributions Act (FICA) Social Security is 6.2% payable on earnings up to $137,700 maximum per year, and the rate for Federal Insurance Contributions Act (FICA) Medicare 1.45%. The employer's total Federal Insurance Contributions Act (FICA) payroll tax for this employee is: Multiple Choice O $722160 $3,312.45 $10,534 05 $2,684 60

An employee earned $43,300 working for an employer in the current year. The current rate for Federal Insurance Contributions Act (FICA) Social Security is 6.2% payable on earnings up to $137,700 maximum per year, and the rate for Federal Insurance Contributions Act (FICA) Medicare 1.45%. The employer's total Federal Insurance Contributions Act (FICA) payroll tax for this employee is: Multiple Choice O $722160 $3,312.45 $10,534 05 $2,684 60

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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Assume that social security taxes are payable at a 6% rate and Medicare taxes are payable at a 1.5% rate with no maximum earnings, and that federal and state unemployment compensation taxes total 6.2% on the first $7,000 of earnings. If an employee earns $2,500 for the current week and the employee's year-to-date earnings before this week were $6,800, what is the total employer payroll taxes related to the current week? a.$187.50 b.$199.90 c.$342.50 d.$12.40
For all payroll calculations, use the following tax rates and round amounts to the nearest cent Employee: OASDI: 6.2% on first $118,500 earned; Medicare 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. Recording Sales tax On July 5, Williams Company recorded sales of merchandise inventory on account $55,000. The sales were subject to sales tax of 4%. On August 15, Williams Company paid the sales tax owed to the state from the July 5 transaction. Requirements Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. Journalize the transaction to record the payment of sales tax to the state on August 15.
You are the accountant for the employer. The employer has only one employee. This is the payroll for the week ended January 31, 2022 All payroll taxes must be paid to the IRS on February 15, 2022 The payroll information is as follows Maximum annual salary subject to FICA 2022 is $147,000. FICA Tax Rate: 7.65% Self-employment tax rate: 15.30% Total weekly salary: $20,000 (total for 1 employee, all subject to FICA tax) ELT (Federal Income Tax withheld from employee's paycheck) $6,000. FICA TAX (withheld from employee's paycheck) needs to be calculated Question: For the employer's accounting records, what is the correct total amount of FICA tax and federal income tax that must be paid to the IRS on February 15, 20227 Multiple Choice $9,060,00 $1,530.00 $6,000.00 $3,000.00 None of the other choices are correct
The monthly salaries for December and the year-to-date earnings of the employees of Bush Consulting Company as of November 30 follow. Determine the amount of Medicare tax to be withheld from each employee's gross pay for December. Assume a 1.45 percent Medicare tax rate and that all salaries and wages are subject to the tax. (Round your final answers to 2 decimal places.) Medicare Taxable Year-to-Date Employee No. December Salary Earnings Through Earning- Medicare Tax 1.45% November 30 December 1 $ 9,400 $ 99,500 2 9,500 70,500 3 10,209 123,800 4 9,500 100,500 es.
Use the 2021 FICA tax rates, shown, to answer the following question. If a taxpayer is not self-employed and earns $128,000, what are the taxpayer's FICA taxes? Employee's Rates Matching Rates Paid by the Employer Self-Employed Rates 7.65% on first $142,800 of 7.65% on first $142,800 paid 15.3% on first $142,800 of net income profits in wages 1.45% of income in excess of $142,800 1.45% of wages paid in excess of $142,800 2.9% of net profits in excess of $142,800 The taxpayer's FICA taxes are $ (Round to the nearest cent as needed.)
Use the 2016 FICA tax rates, shown below, to answer the following question. If a taxpayer is not self-employed and earns $137,000, what are the taxpayer's FICA taxes? Employee's Rates Matching Rates Paid by the Employer Self-Employed Rates 7.65% on first $118,500 of income 1.45% of income in excess of $118,500 7.65% on first $118,500 paid in wages 1.45% of wages paid in excess of $118,500 15.3% on first $118,500 of net profits 2.9% of net profits in excess of $118,500 FICA taxes are ?$
The biweekly taxable wages for the employees of Rite-Shop follow. Compute the FICA taxes for each employee and the employer's FICA taxes. Round all computations to the nearest cent. FICA Taxes Employee No. Employee Name Biweekly Taxable Wages OASDI HI 711 Castro, Manny $1,000.00 512 Corrales, Pat 968.00 624 Guitar, Joseph 1,004.00 325 Moore, Connie 1,046.40 422 Morrison, Harry 1,200.00 210 Robertson, Catherine 1,044.80 111 Swarez, Joseph 1.122.00 Totals Employer's OASDI Total Taxable Wages Employer's OASDI Tax
The Germaine Corp has 18 employees who all make $9.59 per hour. They all worked 77 hours last payroll period. Calculate the Germaine's payroll tax liability for its employees for the period. Assume the following tax rates: Social Security 6.20%, Medicare 1.45%, Federal income tax 10%.
The required deduction for Social Security is 6.2% OASDI (Old Age Survivors and Disability Insurance) of wages earned, to a maximum of $97,500 and 1.45% HI (Hospital Insurance, commonly known as "Medicare") for all earnings. Refer to the Social Security and Medicare information. Employers are required to match the employee's deductions and send the total to the IRS. Compute the maximum percent that can be sent to the IRS for any one employee during the period of a year. 13.3% 13.5% 15.3% 15.5%
The current Federal Unemployment Taxes (FUTA) tax rate is 0.6%, and the State Unemployment Taxes (SUTA) tax rate is 5.4%. Both taxes are applied to the first $7,000 of an employee's pay. Assume that an employee earned total wages of $3,060 in the current period and had cumulative pay for prior periods of $6,120. What is the amount of unemployment taxes the employer must pay on this employee's wages for the current period? Multiple Choice $420.00. $367.20. $52.80. O $183.60. $0.00.
John Moyer (married; 6 federal withholding allowances) earned monthly gross pay of $3,150. He participates in a flexible spending account, to which he contributes $265 during the period.Using wage-bracket method: Federal income tax withholding = $Using percentage method: Federal income tax withholding = $
For each employee listed, use both the wage-bracket method and the percentage method to calculate federal income tax withholding for an employee who has submitted a pre-2020 Form W-4. 1: Michael Daugherty (married; 5 federal withholding allowances) earned weekly gross pay of $875. For each period, he makes a 403(b) retirement plan contribution of 14% of gross pay.Using wage-bracket method: Federal income tax withholding = $ Using percentage method: Federal income tax withholding = $