Employee AA is paid monthly. For the month of January, she earned a total of $8,260. The tax for social security is 6.2% of the first $128,400 of employee earnings each calendar year and the tax rate for Medicare is 1.45% of all earnings. The FUTA tax rate of .6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from Employee AA’s earnings was $1,325.17. Employee AA’s net pay for the month is
Employee AA is paid monthly. For the month of January, she earned a total of $8,260. The tax for social security is 6.2% of the first $128,400 of employee earnings each calendar year and the tax rate for Medicare is 1.45% of all earnings. The FUTA tax rate of .6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from Employee AA’s earnings was $1,325.17. Employee AA’s net pay for the month is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Employee AA is paid monthly. For the month of January, she earned a total of $8,260. The tax for social security is 6.2% of the first $128,400 of employee earnings each calendar year and the tax rate for Medicare is 1.45% of all earnings. The FUTA tax rate of .6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from Employee AA’s earnings was $1,325.17. Employee AA’s net pay for the month is:
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