Ken Gorman is a maitre d' at Carmel Dinner Club. On February 1, 20-- his gross pay was $880 (three days working, one paid vacation day, and one paid sick day). He also reported to his employer tips of $1,020 for the previous month (applicable taxes to be deducted out of this pay). Gorman belongs to the company's 401(k) plan and has 5% of his gross pay ($880) deducted each week (salary reduction). Carmel Dinner Club also provides a matching contribution ($44) into the plan for Gorman. Compute the following amounts: a. Deduction for OASDI tax b. Deduction for HI tax
Ken Gorman is a maitre d' at Carmel Dinner Club. On February 1, 20-- his gross pay was $880 (three days working, one paid vacation day, and one paid sick day). He also reported to his employer tips of $1,020 for the previous month (applicable taxes to be deducted out of this pay). Gorman belongs to the company's 401(k) plan and has 5% of his gross pay ($880) deducted each week (salary reduction). Carmel Dinner Club also provides a matching contribution ($44) into the plan for Gorman. Compute the following amounts: a. Deduction for OASDI tax b. Deduction for HI tax
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ken Gorman is a maitre d' at Carmel Dinner Club. On February 1, 20-- his gross pay was $880 (three days working, one paid vacation day, and one paid sick day). He also reported to his employer tips of $1,020 for the previous month (applicable taxes to be deducted out of this pay). Gorman belongs to the company's 401(k) plan and has 5% of his gross pay ($880) deducted each week (salary reduction). Carmel Dinner Club also provides a matching contribution ($44) into the plan for Gorman. Compute the following amounts:
a. Deduction for OASDI tax | |
b. Deduction for HI tax |
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