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For tax purposes, assume that the maximum taxable earnings are $118,500 for Social Security and $7,000 for the unemployment tax and that all earnings are taxable for Medicare. For the payroll register for the month of November for Shelby, Inc., determine the taxable earnings for each employee. If an amount is zero, enter "0". NAME BEGINNING CUMULATIVE EARNINGS TOTAL EARNINGS ENDING CUMULATIVE EARNINGS TAXABLE EARNINGS UNEMPLOYMENT SOCIAL SECURITY MEDICARE Axton, C. 109,798.00 10,668.00 120,466.00 Edgar, E. 145,398.00 19,392.00 164,790.00 0 Gorman, L. 36,979.00 3,041.00 40,020.00 0 Jolson, R. 24,149.00 2,440.00 26,589.00 Nixel, P. 6,813.00 2,214.00 9,027.00 Feedback Check My Work First, make sure that the amount of beginning Cumulative Earnings plus the total earnings for this pay period do not exceed the maximum amount for Social Security. If they do, only multiply the percentage times the amount that brings you to the maximum amount. For example: Beginning cumulative amount = $110,450.00 and the current earnings - $5,320.00. This would bring the ending cumulative amount to $115,770.00 which puts you over the maximum for Social Security Taxable earnings. To find out how much to tax, you would take the (maximum taxable earnings amount) $118,500.00 - $110,450.00 (Beginning Cumulative Earnings) $8,050.00 (The part of current earnings that are taxable earnings). The same applies to the unemployment amount. Only use the difference to figure your taxable earnings.

For tax purposes, assume that the maximum taxable earnings are $118,500 for Social Security and $7,000 for the unemployment tax and that all earnings are taxable for Medicare. For the payroll register for the month of November for Shelby, Inc., determine the taxable earnings for each employee. If an amount is zero, enter "0". NAME BEGINNING CUMULATIVE EARNINGS TOTAL EARNINGS ENDING CUMULATIVE EARNINGS TAXABLE EARNINGS UNEMPLOYMENT SOCIAL SECURITY MEDICARE Axton, C. 109,798.00 10,668.00 120,466.00 Edgar, E. 145,398.00 19,392.00 164,790.00 0 Gorman, L. 36,979.00 3,041.00 40,020.00 0 Jolson, R. 24,149.00 2,440.00 26,589.00 Nixel, P. 6,813.00 2,214.00 9,027.00 Feedback Check My Work First, make sure that the amount of beginning Cumulative Earnings plus the total earnings for this pay period do not exceed the maximum amount for Social Security. If they do, only multiply the percentage times the amount that brings you to the maximum amount. For example: Beginning cumulative amount = $110,450.00 and the current earnings - $5,320.00. This would bring the ending cumulative amount to $115,770.00 which puts you over the maximum for Social Security Taxable earnings. To find out how much to tax, you would take the (maximum taxable earnings amount) $118,500.00 - $110,450.00 (Beginning Cumulative Earnings) $8,050.00 (The part of current earnings that are taxable earnings). The same applies to the unemployment amount. Only use the difference to figure your taxable earnings.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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For tax purposes, assume that the maximum taxable earnings are $118,500 for Social Security and $7,000 for the unemployment tax and that all earnings are taxable for Medicare. For the payroll register for the month of November for Shelby, Inc., determine the taxable earnings for each employee. If an amount is zero, enter "0". NAME BEGINNING CUMULATIVE EARNINGS TOTAL EARNINGS ENDING CUMULATIVE EARNINGS TAXABLE EARNINGS UNEMPLOYMENT SOCIAL SECURITY MEDICARE Axton, C. 109,798.00 10,668.00 120,466.00 Edgar, E. 145,398.00 19,392.00 164,790.00 0 Gorman, L. 36,979.00 3,041.00 40,020.00 0 Jolson, R. 24,149.00 2,440.00 26,589.00 Nixel, P. 6,813.00 2,214.00 9,027.00 Feedback Check My Work First, make sure that the amount of beginning Cumulative Earnings plus the total earnings for this pay period do not exceed the maximum amount for Social Security. If they do, only multiply the percentage times the amount that brings you to the maximum amount. For example: Beginning cumulative amount = $110,450.00 and the current earnings - $5,320.00. This would bring the ending cumulative amount to $115,770.00 which puts you over the maximum for Social Security Taxable earnings. To find out how much to tax, you would take the (maximum taxable earnings amount) $118,500.00 - $110,450.00 (Beginning Cumulative Earnings) $8,050.00 (The part of current earnings that are taxable earnings). The same applies to the unemployment amount. Only use the difference to figure your taxable earnings.
Transcribed Image Text:For tax purposes, assume that the maximum taxable earnings are $118,500 for Social Security and $7,000 for the unemployment tax and that all earnings are taxable for Medicare. For the payroll register for the month of November for Shelby, Inc., determine the taxable earnings for each employee. If an amount is zero, enter "0". NAME BEGINNING CUMULATIVE EARNINGS TOTAL EARNINGS ENDING CUMULATIVE EARNINGS TAXABLE EARNINGS UNEMPLOYMENT SOCIAL SECURITY MEDICARE Axton, C. 109,798.00 10,668.00 120,466.00 Edgar, E. 145,398.00 19,392.00 164,790.00 0 Gorman, L. 36,979.00 3,041.00 40,020.00 0 Jolson, R. 24,149.00 2,440.00 26,589.00 Nixel, P. 6,813.00 2,214.00 9,027.00 Feedback Check My Work First, make sure that the amount of beginning Cumulative Earnings plus the total earnings for this pay period do not exceed the maximum amount for Social Security. If they do, only multiply the percentage times the amount that brings you to the maximum amount. For example: Beginning cumulative amount = $110,450.00 and the current earnings - $5,320.00. This would bring the ending cumulative amount to $115,770.00 which puts you over the maximum for Social Security Taxable earnings. To find out how much to tax, you would take the (maximum taxable earnings amount) $118,500.00 - $110,450.00 (Beginning Cumulative Earnings) $8,050.00 (The part of current earnings that are taxable earnings). The same applies to the unemployment amount. Only use the difference to figure your taxable earnings.
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