Compute the net pay Metro Delivery Services pays an employee a monthly salary of $5,000. Payrolldeductions include:Income Tax: 22%Social Security: 7%Health Insurance: $200Compute the net pay.

Step 1: Definition of Net PayNet Pay is the amount an employee receives after all payroll…

Answered: Metro Delivery Services pays an…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter7: Employee Earnings And Deductions

Section: Chapter Questions

Problem 2PA

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An employee earns $5,500 per month working for an employer. The Federal Insurance Contributions Act (FICA) tax rate for Social Security is 6.2% of the first $137,700 of earnings each calendar year and the Federal Insurance Contributions Act (FICA) tax rate for Medicare is 1.45% of all earnings. The current Federal Unemployment Taxes (FUTA) tax rate is 0.6%, and the State Unemployment Taxes (SUTA) tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $182 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $150 and contributes $75 to a retirement plan each month. What is the amount the employer should record as payroll taxes?
What is employee net pay
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Subject - account Please help me. Thankyou.
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Metro Delivery Services pays an employee a monthly salary of $5,000. Payroll deductions include: Income Tax: 22% Social Security: 7% Health Insurance: $200 Compute the net pay.