Provide correct option general accounting Assuming a FICA tax rate of 7.65% on the first $117,000 inwages, 1.45% on amounts in excess of $117,000, and a federalincome tax rate of 20% on all wages, what would be an employee'snet pay for the year if he earned $180,000 for the year?a) $135,050.b) $134,867.c) $134,136.d) $144,000.

Step 1: Define Net PayEvery employee receives the salary or wage at its net pay. It is the cash…

Answered: Assuming a FICA tax rate of 7.65% on…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 10PA: Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and...

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Assuming a FICA tax rate of 7.65% on the first $117,000 in wages, 1.45% on amounts in excess of $117,000, and a federal income tax rate of 20% on all wages, what would be an employee's net pay for the year if he earned $180,000 for the year? a) $135,050. b) $134,867. c) $134,136. d) $144,000.