Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned atotal of $8,260. The FICA tax for social security is 6.2% of the first $132,900 earned each calendar year andthe FICA tax rate for Medicare is 1.45% of all earnings. The FUTA tax rate of 0.6% and the SUTA tax rate of5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld fromher earnings was $1,325.17. What is the total amount of taxes withheld from the Portia's earnings?

Gross earnings$8260Less: DeductionsSocial security tax$512.12= $8260*6.2%Medicare tax$119.77=…

Answered: Portia Grant is an employee who is paid…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Carol Blane’s cumulative yearly earnings for the year are $29,000, counting her current payperiod salary amount of $4,500. Assume the FICA tax rate is 6.2 percent for Social Security, witha limit of $106,800, and 1.45 percent for Medicare, applied to all earnings. The FUTA tax is 0.6percent, with a limit of $7,000, and the SUTA tax is 5.4 percent, with a limit of $7,000. Theemployer's payroll tax expense entry will include a credit to: a. FICA Tax Payable for $279.00.b. FICA Tax Payable for $344.25.c. Federal Unemployment Tax Payable for $27.00.d. State Unemployment Tax Payable for $243.00.e. Federal Unemployment Tax Payable for $270.00.
Davis and Thomas have earnings of $841 each. The social security tax rate is 6.0%, and the Medicare tax rate is 1.5%. assuming that the payroll will be paid on December 29th, what will the employers total FICA tax for this payroll?
AZT Company has one employee who has worked January - March 15 of the current year. The employee is single, paid semi-monthly, and claims two allowances on his W-2. The federal withholding is $143. The company is in a state that has no state income taxes. The FICA Social Security tax rate is 6.2% on the first $118,500 of wages and the FICA Medicare tax rate is 1.45% on all wages. AZT Company's FUTA tax rate is 0.6% on the first $7,000 of wages and their SUTA tax rate is 1.95% on the first $8,000 of wages. The employee's earnings thus far are as follows: Gross pay Jan - Mar 15th Gross pay for March 31st $6,200 $1,280 Use the information above to calculate the employer's payroll taxes and prepare the journal entry AZT Company will use to record the employer's portion of the payroll taxes for the pay period ended March 31st. Date 03/31 Description Debit Credit to record employer's portion of payroll taxes for the pay period ending March 31st
Domestic
Dr. Josef Young earns an adjusted gross weekly income of $2,472. How much Social Security tax should be withheld the first week of the year? How much Medicare tax should be withheld? The Social Security tax rate is 6.2% from earnings to be taxed to a maximum annual wage of $118,500. The Medicare tax rate is 1.45% from all earnings to a maximum annual wage of $200,000. The Social Security tax is $??? (Type an integer or a decimal. Round to the nearest cent as needed.) The Medicare tax is $??? (Type an integer or a decimal. Round to the nearest cent as needed.)
Richard Gaziano is a manager for Health Care, Incorporated. Health Care deducts Social Security, Medicare, and FIT (by percentage method) from his earnings. Assume a rate of 6.2% on $142, 800 for Social Security and 1.45% for Medicare. Before this payroll, Richard is $1,000 below the maximum level for Social Security earnings. Richard is married, filing jointly and is paid weekly. What is Richard's net pay for the week if he earns $1,750? (Use Table 9.1).
R.D. Kagen employs Audrey Lopez at a salary of $32,900 a year. Kagen is subject to employer Social Security taxes at a rate of 6.2% and Medicare taxes at a rate of 1.45% on Lopez's salary. In addition, Kagen must pay SUTA tax at a rate of 5.4% and FUTA tax at a rate of 0.6% on the first $7,000 of Lopez's salary. Compute the total cost to Kagen of employing Lopez for the year.
An employee earned $62,500 during the year working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 of employer earnings per calendar year and the FICA tax rate Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. What is the amount of total unemployment taxes the employee must pay?
The monthly salaries for December and the year-to-date earnings as of November 30 for the three employees of the Lakeview Medical Center are listed below. Compute the amount of social security tax and Medicare tax to be withheld from each of the employee's gross pay for December. Assume a 6.2 percent social security tax rate on a maximum of $132,900 for the calendar year. Assume a 1.45 percent Medicare tax rate. (Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "O" wherever required.) Employee December Y-T-D Earnings Soc. Sec. Number Medicare Tax for Dec, Salary through Nov. 30 Tax for Dec. 7,500 $ 69,500 2 9,000 129,000 8,500 122,600
Martin Jackson receives an hourly wage rate of $25, with time and a half for all hours worked in excess of 40 hours during a week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $362; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the net amount to be paid to Jackson? Oa. $1,225.00 Ob. $1,846.13 Oc. $771.13 Od. $1,633.13
Baker Green's weekly gross earnings for the week ending December 7 were $2,000, and her federal income tax withholding was $240. Assuming the social security rate is 6% and Medicare is 1.5%, and all earnings are subject to FICA taxes, what is Green's net pay? Round your answer to the nearest whole dollar.
An employee earned $46,800 during the year working for an employer when the maximum limit for Social Security was $128,400. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee's annual FICA taxes amount is: Multiple Choice $2,789.20. $6,489.70. $7,160.40. $3,580.20. $670.70.

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