OO$5,042.82$4,673.92$4,995.22$4,721.52E An employee earns $5,950 per month working for an employer. The Federal Insurance Contributions Act (FICA) tax rate forSocial Security is 6.2% of the first $137,700 earned each calendar year and the Federal Insurance Contributions Act (FICA) taxrate for Medicare is 1.45% of all earnings. The current Federal Unemployment Taxes (FUTA) tax rate is 0.6%, and the StateUnemployment Taxes (SUTA) tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. Theemployee has $200 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $168 andcontributes $84 to a retirement plan each month. What is the amount of net pay for the employee for the month of January?(Round your intermediate calculations to two decimal places.)Multiple Choice$5,129.10454333

Variables in the question:Gross Pay=$5950FICA tax rate for social security=6.2% FICA tax rate for…

Answered: An employee earns $5,950 per month…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Samantha Lindsay works at College of Austin and is paid $15 per hour for a 40-hour workweek and time-and-a-half for hours above 40. (Click the icon to view payroll tax rate information.) Read the requirements. CEN Requirement 1. Compute Lindsay's gross pay for working 52 hours during the first week of February. Straight-time pay for 40 hours $ 600.00 270.00 Overtime pay for 12 hours 870.00 Gross Pay Requirement 2. Lindsay is single, and her income tax withholding is 15% of total pay. Lindsay's only payroll deductions are payroll taxes. Compute Lindsay's net (take-home) pay for the week. Assume Lindsay's earnings to date are less than the OASDI limit. (Round all amounts to the nearest cent) Gross pay Withholding deductions: Employee income tax Employee OASDI tax Employee Medicare tax Total withholdings Net (take-home) pay 4
An employee earned $62,500 during the year working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 of employer earnings per calendar year and the FICA tax rate Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. What is the amount of total unemployment taxes the employee must pay?
An employee earned $46,800 during the year working for an employer when the maximum limit for Social Security was $128,400. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee's annual FICA taxes amount is: Multiple Choice $2,789.20. $6,489.70. $7,160.40. $3,580.20. $670.70.
The Social Security Administration increased the taxable wage base from $137,700 to $142,800. The 6.2% tax rate is unchanged. Joe Burns earned over $131,700 each of the past two years. What is the percent increase in the base?
Sky Company employed Tom Mills in Year 1. Tom earned $5,900 per month and worked the entire year. Assume the Social Security tax rate is 6 percent for the first $130,000 of earnings, and the Medicare tax rate is 1.5 percent. Tom's federal income tax withholding amount is $870 per month. Use 5.4 percent for the state unemployment tax rate and 0.6 percent for the federal unemployment tax rate on the first $7,000 of earnings per employee
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. FICA - Social Security FICA Base FICA - Medicare Federal Unemployment Tax (FUTA) State Unemployment Tax (SUTA) Unemployment limit Situation FUTA SUTA FICA-Social Security FICA-Medicare a. b. C. Gross Pay through August 31 $6,400 2,000 131,400 6.2% $137,700 1.45% 0.6% 5.4% $7,000 Gross Pay for September Required: Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (c). Note: If no tax is due, no formula is required. 'Tax Situation a Situation b Situation c $800 2,100 8,000
Given the following, calculate the state (assume 5.3%) and federal unemployment taxes that the employer must pay for each of the first two quarters. The federal unemployment tax is 0.8% on the first $7,000. Both state and federal unemployment taxes apply to the first $7,000 only. (Round your answers to the nearest cent.) PAYROLL SUMMARY Quarter 1 Quarter 2 $3,200 Bill Adams $ 7,300 12,800 Rich Haines 7,400 Alice Smooth 2,600 4,400 PAYROLL SUMMARY Quarter 1 Quarter 2 Total $780.8 8 $451.4 SUTA $678.4 $392.2 8 FUTA $102.4 24 59.2 * ...
An employee earns $5,500 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $182 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $150 and contributes $75 to a retirement plan each month. What is the amount of net pay for the employee for the month of January? (Round your intermediate calculations to two decimal places.)
Triston Vale is paid on a monthly basis. For the month of January of the current year, he earned a total of $5,220. Federal Insurance Contributions Act (FICA) tax for Social Security is 6.2% on the first $137,700 of earnings each calendar year, and the Federal Insurance Contributions Act (FICA) tax for Medicare is 1.45% of all earnings. The Federal Unemployment Taxes (FUTA) tax rate is 0.6% and the State Unemployment Taxes (SUTA) tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of Federal Income Tax withheld from his earnings was $885.70. a. Journalize the entry to record the payroll for the month of January. DATE X/X Salaries Expense SUTA tax FUTA tax Debit Credit b. Using the information from the question above, journalize the entry to record the payroll tax expense incurred for the month of January. DATE X/X Debit Credit
For the first week of 2022, Coby Co. pays wages of $6,000 and withholds $1,000 for federal income taxes and $400 for state income taxes. The combined FICA and Medicare tax rate is 7.65%. The FUTA rate is 0.8% and the SUTA rate is 5.4% Record the payroll. Record the payroll tax.
According to a summary of the payroll of PJW Co., $380,500 in earnings were subject to the 7.7% FICA tax. Also, $62,783 in earnings were subject to state and federal unemployment taxes. Round your answers to the nearest cent. a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.4%; federal unemployment, 1.1%.
Carmen Flores’ weekly gross earnings for the week ending Dec. 7th were $3,000, and her federal income tax withholding was $580. Prior to this week Flores had earned $99,000 for the year. Assuming the social security rate is 6% on the first $100,000 of annual earnings and Medicare is 1.5% of all earnings, what is Flores’ net pay?

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