An employee works 37 regular hours during a workweek in August of 2021. He was hired four years ago, earns a salary of $140,200/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 8% of gross pay, which is to be contributed to a 401(k) plan.
An employee works 37 regular hours during a workweek in August of 2021. He was hired four years ago, earns a salary of $140,200/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 8% of gross pay, which is to be contributed to a 401(k) plan.
Chapter5: Unemployment Compensation Taxes
Section: Chapter Questions
Problem 8PB: During 2019, Jake Gore worked for two different employers. Until May, he worked for Wonderman...
Related questions
Question
An employee works 37 regular hours during a workweek in August of 2021. He was hired four years ago, earns a salary of $140,200/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 8% of gross pay, which is to be contributed to a 401(k) plan.
Expert Solution
Step 1 Weekly pay of the Employee
| Salary = $ 140200/year. 8% deduction for 401 (K) Plan |
| Taxable income for federal income tax withholding |
| 140200 - 8% of 140200 |
| $128984 |
| $128984 Is the annual amount |
| Divide this by 52 to get weekly amount i.e. 128984 / 52 = $ 2480.46 |
Weekly pay is $2480.46 in this case.
401(K) Plan.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
