I need this question answer general Accounting Assuming a Medicare tax rate of 1.45% and monthly gross wagesof $2,500, the amount recorded in Medicare Tax Payable for onequarter for the employee's payroll deduction is:A. a debit for $36.25.B. a credit for $36.25.C. a debit for $108.75.D. a credit for $108.75.

Step 1: Define Medicare TaxA Medicare tax, also called hospital insurance tax is a charge on the…

Answered: Assuming a Medicare tax rate of 1.45%…

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter7: Employee Earnings And Deductions

Section: Chapter Questions

Problem 5E

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The Federal Insurance Contributions Act (FICA) requires employers to deduct a percent of your income as taxes for Social Security to pay pays for retirement and disability benefits. On a payroll statement Social Security and Medicare are under one umbrella: FICA Gross Pay * 6.2%= Social Security tax Withheld (6.2% = .062) nts Gross Pay * 1.45% = Medicare tax Withheld (1.45% = .0145) FICA = Social Security Tax + Medicare Tax
Find the Social Security tax and the Medicare tax paid by Jeff Mendi for the current pay period. Assume all Jeff's earnings are subject to both taxes and that the FICA rate is 6.2% and the Medicare rate is 1.45%. Earnings Current Pay Period $484.88 Employee FICA @ 6.2% Medicare @ 1.45% Mendi, J. .... What is the FICA tax deducted from Jeff's current gross earnings? (Round to the nearest cent.) The Medicare deduction from Jeff's current gross earnings is $ (Round to the nearest cent.)
Am. 111.
For all payroll calculations, use the following tax rates and round amounts to the nearest cent. Employee: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; ŞUTA: 5.4% on first $7,000 earned. E-F:11-19 Recording employer payroll taxes and employee benefits (Learning Objective 2) Ricardo's Mexican Restaurant incurred salaries expense of $62,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $22,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $3,000), life insurance (cost to the company, $330), and retirement benefits (cost to the company, 10% of salaries expense). Requirements 1. Journalize Ricardo's expenses for employee benefits and for…
Calculating Social Security and Medicare Taxes Assume a Social Security tax rate of 6.2% is applied to maximum earnings of $128,400 and a Medicare tax rate of 1.45% is applied to all earnings. What is the social security tax paid if jose 's gross income is $145,780.00 for the year.
Consider gross earnings of $86,000. The standard deduction is $12,000 and itemized deduction is $8,000. Social security tax rate is 6.2%; Medicare tax rate is 1.45%. How much is the taxable income (for federal income tax)? Give typing answer with explanation and conclusion
Concerning Payroll Accounting - I need to clarify what portion of wages are used to calculate Social Security tax (6.2%) & Medicare tax (1.45%) in a single pay period. Are both taxes calculated on gross wages or calculated on adjusted wages for after pre-tax deductions (i.e., Health Insurance Premiums & Retirement deductions)? Thank you. Jewelee Marple
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am. 115.

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Assuming a Medicare tax rate of 1.45% and monthly gross wages of $2,500, the amount recorded in Medicare Tax Payable for one quarter for the employee's payroll deduction is: A. a debit for $36.25. B. a credit for $36.25. C. a debit for $108.75. D. a credit for $108.75.