Assume FICA tax rate of 6.2% on the first $132,900 in wages, plus 1.45% Medicare tax on all earnings, along with federal income tax rate of 20% on all earnings, what would be an employee's net pay for the year if he/she earned $210,000 for the year? Please show work.
Assume FICA tax rate of 6.2% on the first $132,900 in wages, plus 1.45% Medicare tax on all earnings, along with federal income tax rate of 20% on all earnings, what would be an employee's net pay for the year if he/she earned $210,000 for the year? Please show work.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Assume FICA tax rate of 6.2% on the first $132,900 in wages, plus 1.45% Medicare tax on all
earnings, along with federal income tax rate of 20% on all earnings, what would be an
employee's net pay for the year if he/she earned $210,000 for the year? Please show work.
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